Part 1.
RAILROAD COMMISSION OF TEXAS
Chapter 7.
GAS UTILITIES DIVISION
Subchapter B. SUBSTANTIVE RULES
16 TAC §7.60
The Railroad Commission of Texas proposes new §7.60
relating to suspension of gas utility service during winter months. The basis
for proposed new §7.60 is emergency rule §7.60 adopted by the Commission
on November 28, 2000 (25 TexReg 12274). The Commission determined that an
emergency rule was necessary because of the extreme weather conditions present
at that time in many areas of Texas and because of the dramatic increases
in the cost of natural gas. The Commission also received a petition for rulemaking
filed by Consumers Union, the American Association of Retired Persons, the
Texas Ratepayers' Organization to Save Energy, and the Texas Legal Services
Center, requesting the Commission to adopt a rule addressing this situation.
In adopting the emergency rule, the Commission found that emergency §7.60
was necessary because heating costs would be higher during the winter season
due to a combination of higher than normal gas costs and colder than average
temperatures. The Commission projected that natural gas prices, which averaged
$3.07 per Mcf for Texas residential customers during the 1999- 2000 heating
season, to more than double for the same period in 2000-2001. Commission data
showed that even during relatively mild winter heating seasons, residential
natural gas consumption is at its highest during those months, averaging 10
Mcf per month compared to five Mcf on an annual basis. In addition, the National
Oceanic and Atmospheric Administration (NOAA) data for the week ending November
18, 2000, showed that weather in Texas, measured by heating-degree days, had
so far this heating season been 67% colder than normal. The Commission found
that residential natural gas consumption would be higher than average and
that the average winter residential gas bill would be more than 50% higher
under this combination of factors.
Further, the Commission found that the weather is inherently unpredictable
and variable across the different regions in Texas. For example, extreme weather
conditions can exist in the panhandle while coastal areas are unaffected.
Customers in one area of the state could already be adversely impacted by
the weather conditions that would invoke the emergency rule by the time the
conditions were known with certainty at the Commission's Austin headquarters.
The Commission found that, in times of higher energy costs, consumers may
restrict their consumption of natural gas for residential heating to levels
that could be detrimental to their well being. The Texas Department of Health
recognizes the dangers of cold weather and was, at the time the Commission
adopted emergency §7.60, developing educational material on hypothermia
(severe or prolonged loss of body heat because of cold environments). In 1999,
at least 21 people died in Texas from hypothermia; of those 21, at least 17
(81%) were age 60 or older and many of them died unexpectedly in their own
homes. Without adequate heat, many people, especially the elderly, are in
danger long before the temperature drops to freezing. Hypothermia is a below-normal
body temperature, typically 96 degree Fahrenheit or lower, and can threaten
the health of older people in cool indoor temperatures as high as 60 degrees
Fahrenheit. In Texas, it is uncommon for temperatures to drop to freezing
for 24 hours or more. It is not, however, uncommon for temperatures to be
below 60 degrees for extended periods of time.
The Commission found that having emergency §7.60 in place before the
onset of the combination of extreme weather conditions and higher gas prices
would provide appropriate assurance to residential consumers that, during
periods of extreme cold, their residential natural gas service would not be
disconnected because of delinquent bills. Thus, the emergency would likely
prevent unnecessary suffering and, perhaps, irremediable harm. Therefore,
the Commission found that an imminent peril to the public health, safety,
and welfare existed, necessitating the adoption of emergency §7.60.
At the time the Commission adopted the emergency rule, the Commission indicated
that it would request informal comments from the industry and the public regarding
rule language to be proposed and adopted on a permanent basis. This drafted
rule language was the same as the language in the emergency rule. The draft
rule text was placed on the Commission's web site, so that commenters could
respond on a web-based form, by electronic mail, or by regular mail. The Commission
received six comments suggesting the following changes, which have been incorporated
into this proposal. For purposes of this discussion, the phrase "draft language"
refers to the rule language on the Commission's web site which was the subject
of the informal comments; the phrase "proposed language" refers to the rule
text proposed in this rulemaking for permanent adoption consideration.
1. The draft language for subsection (b)(1) stated that a utility shall
not disconnect any customer on a day when the previous day's temperature in
the county where the customer takes service fell below 40 degrees Fahrenheit
and the National Weather Service predicts that the temperature in that county
will fall below that level during the next 24 hours. A comment stated that
this language should refer specifically to residential customers, not "any"
customers, so proposed subsection (b)(1) specifies "a delinquent residential
customer."
2. Draft language in subsection (b)(1) also referred to the temperature
falling below 40 degrees Fahrenheit. The proposed language was changed to
32 degrees Fahrenheit. The temperature threshold was decreased to be more
consistent with Public Utility Commission rules for electric utilities and
rules of surrounding states. The Commission also recognized the potential
for small utilities to be severely affected by the higher threshold of 40
degrees because of revenue shortfalls as a result of higher uncollectibles.
The lower threshold of 32 degrees establishes a minimum "safety net" for consumers,
but allows utilities the flexibility to establish a higher threshold for disconnects
if desired as outlined in proposed new subsection (e). For example, a provider
may wish to increase the temperature threshold from 32 degrees to 40 degrees.
3. Draft language in subsection (b)(2) referred to a pledge, letter of
intent, purchase order, or other notification from an energy assistance provider
that it is forwarding sufficient payment to continue service. The proposed
language states that this notice must be in writing. Some commenters requested
that the notice be made in writing because of past experiences receiving telephone
calls from individuals who were not authorized to give such notice.
4. Draft language in subsection (b)(3) referred to days when "personnel
of the provider" were not available to receive payments, make collections,
or reconnect service. The proposed language for subsection (b)(3) adds the
phrase "or agents" of the provider. Some commenters stated that they use authorized
agents to perform some of these functions and requested that the rule include
this term.
5. Draft language in subsection (d) stated that within 10 days of the date
of adoption of the rule, providers would be required to give a copy of the
rule to its customers. Proposed subsection (d) changes 10 days to 30 days
and adds the phrase "Each October, utilities shall give a copy of this rule
to:" The emergency rule, which was adopted on November 28, 2000, specified
10 days because the heating season had already begun. The language changes
to proposed new §7.60 recognize that providers will have more time to
distribute this notice before the beginning of the next heating season on
November 1, 2001.
6. Some comments suggested that utilities be required, rather than encouraged,
to offer deferred payment plans because a deferred payment plan allows the
customer that is already at risk of having service disconnected to pay an
outstanding bill in installments beyond the due date of the next bill and
allows the customer's gas service to continue. This differs from a level or
average payment plan that simply allows a customer to better plan their utility
payments. The Commission has determined that this issue has merit, but because
the requirements of a deferred payment plan are included in a different Commission
rule, §7.45 (relating to Quality of Service), the Commission believes
that addressing this issue in a separate rulemaking is preferable. Revisions
to §7.45 are currently being developed and will be published for comment
in the near future.
Following this extensive drafting and review of possible language, the
Commission proposes new §7.60 to prohibit disconnection of service to
residential customers in certain instances and to encourage utilities and
master meter operators to offer deferred payment plans and level or average
payment plans to customers to help prevent service disconnection during severe
weather events. The Commission's experience indicates that utilities have
in the past voluntarily suspended service disconnections during extreme weather
conditions, and that all utilities have in place some form (formal or informal)
of deferred payment plan for customers who are unable to remain current on
gas bills. The proposed new rule will establish a consistent threshold to
prohibit disconnection of delinquent customers for all jurisdictional utilities
and master meter operators.
Proposed new §7.60 applies to gas utilities and to owners, operators,
and managers of master meter systems within the original jurisdiction of the
Railroad Commission, including environs customers and special rate customers
in unincorporated areas. The rule defines all such gas utilities and owners,
operators and managers of master meter systems as "providers."
Proposed subsection (b)(1) prohibits providers from disconnecting a customer
on a day when the previous day's temperature in the county where the customer
takes service fell below 32 degrees Fahrenheit and the National Weather Service
predicts that the temperature in that county is likely to fall below that
level during the next 24 hours. Subsection (b)(2) prohibits providers from
disconnecting service to a delinquent residential customer for a billing period
in which the provider receives a written pledge, letter of intent, purchase
order or other notification from the energy assistance provider that it is
forwarding sufficient payment to continue service. Finally, subsection (b)(3)
prohibits providers from disconnecting service to a delinquent residential
customer on a day or on a day immediately preceding a day when personnel or
agents of the provider are not available for the purpose of receiving payment
or making collections and reconnecting service.
To address delinquent bills, subsection (c) encourages providers to offer
customers a deferred payment plan as set forth in the Commission's existing
quality of service rule §7.45(D). Proposed §7.60(c)(1) and (2) also
encourage providers to offer a level or average payment plan. A level payment
plan must allow residential customers to pay one-twelfth of that customer's
estimated annual consumption at the appropriate customer class rates each
month, with provisions for annual adjustments as may be determined based on
actual gas use. An average payment plan must allow residential customers to
pay one-twelfth of the sum of the customer's current month's consumption plus
the previous 11 months consumption (or, for a new customer, an estimate) at
the appropriate customer class rates each month, plus a portion of any unbilled
balance.
Proposed subsection (c)(3) states that if a customer does not fulfill the
terms and obligations of a level or average payment plan, a provider that
is a gas utility shall have the right to disconnect service to that customer
pursuant to Commission rule §7.45(4), unless disconnection would be prohibited
under subsection (b) of §7.60. A provider that is a gas utility may require
a deposit from all customers entering into level or average payment plans
pursuant to the requirements of §7.45(5). The gas utility would be required
to pay interest on the deposit and may retain the deposit for the duration
of the level or average payment plan.
Proposed subsection (d) requires that each October, utilities shall give
a copy of this rule to the social services agencies that distribute funds
from the Low Income Home Energy Assistance Program within its service area;
any other social service agency of which the utility is aware that provides
financial assistance to low income customers in its service area, and any
customers who are owners, operators or managers of master metered systems.
Further, utilities must provide a copy of this rule to all other customers
of the utility.
Jackie Standard, Research Specialist, Regulatory Analysis and Policy Section,
Gas Services Division, has determined that for the first five-year period
the new section is in effect, there will be no fiscal implications for state
government as a result of enforcing or administering the section. It is likely
that the Commission or other agencies will receive a higher volume of customer
complaints as a result of possible winter disconnections, but staff expects
that these calls can be handled with current resources. There will be no fiscal
implications for local governments because this rule applies only to jurisdictional
utilities and master meter operators serving customers outside cities. However,
there will be fiscal implications for gas utilities, particularly small gas
distribution utilities, as well as owners, operators, and managers of master
meter systems. Due to the large number of variables involved (weather conditions,
number of customers, whether any customers are or may become delinquent in
paying their bills, etc.), the Commission cannot determine the exact cost
for a particular provider or for the industry as a whole. The potential impact
on small utilities and owners, operators, and managers of master meter systems
could be significant if such a provider is unable to collect revenues as a
result of the proposed rule. This is because the number of customers with
delinquent bills may increase if the provider is prohibited from terminating
service for non-payment when temperatures are below 32 degrees. By decreasing
the threshold of 40 degrees, in emergency §7.60 currently in effect,
to 32 degrees as proposed in §7.60(b)(1), the Commission has attempted
to balance human health needs with the potential financial impact on smaller
providers. However, this could ultimately affect some providers' ability to
provide natural gas service at all.
Ms. Standard also has determined that for each year of the first five years
the rule is in effect the public benefit anticipated as a result of enforcing
the rule will be a better assurance of adequate gas service to residential
customers during extreme weather conditions, reducing the risk of injury or
death from exposure to temperatures below freezing. Those especially at risk
are the elderly and small children, as well as low-income customers or those
on fixed incomes.
Comments on the proposal may be submitted to Jackie Standard, Research
Specialist, Regulatory Analysis and Policy Section, Gas Services Division,
Railroad Commission of Texas, P.O. Box 12967, Austin, Texas 78711-2967. Comments
may also be submitted online at http://www.rrc.state.tx.us/divisions/gs/commentform.html,
by facsimile transmission to Ms. Standard's attention at (512) 463- 7962,
or by electronic mail to jackie.standard@rrc.state.tx.us. Comments will be
accepted for 30 days after publication in the
Texas
Register
.
The new section is proposed under Texas Utilities Code, §§102.001
and 104.251, which give the Railroad Commission exclusive original jurisdiction
over the rates and services of a gas utility distributing natural gas or synthetic
natural gas in areas outside a municipality and a gas utility that transmits,
transports, delivers, or sells natural gas or synthetic natural gas to a gas
utility that distributes the gas to the public, and require gas utilities
to furnish service, instrumentalities, and facilities that are safe, adequate,
efficient, and reasonable; and Texas Utilities Code, §§124.001 and
124.002, which give the Commission jurisdiction over master meter operators
and require the Commission to adopt rules requiring master meter operators
to allocate fairly the cost of the gas consumption of each dwelling unit.
The Texas Utilities Code, §§104.251, 124.001, and 124.002, are
affected by the proposed new section.
Issued in Austin, Texas on February 22, 2001.
§7.60.Suspension of Gas Utility Service Disconnection During Winter Months.
(a)
Applicability and scope. This rule applies to gas utilities,
as defined in Texas Utilities Code, §§101.003(7) and 121.001, and
to owners, operators, and managers of mobile home parks or apartment houses
who purchase natural gas through a master meter for delivery to a dwelling
unit in a mobile home park or apartment house, pursuant to Texas Utilities
Code, §§124.001- 124.002, within the jurisdiction of the Railroad
Commission pursuant to Texas Utilities Code, §102.001. For purposes of
this section, all such gas utilities and owners, operators and managers of
master meter systems shall be referred to as "providers." Providers shall
comply with the following service standards. A gas distribution utility shall
file amended service rules incorporating these standards with the Railroad
Commission in the manner prescribed by law.
(b)
Disconnection prohibited. Except where there is a known
dangerous condition or a use of natural gas service in a manner that is dangerous
or unreasonably interferes with service to others, a provider shall not disconnect
natural gas service to:
(1)
a delinquent residential customer on a day when the previous
day's temperature in the county where the customer takes service fell below
32 degrees Fahrenheit and the National Weather Service predicts that the temperature
in that county will fall below that level during the next 24 hours;
(2)
a delinquent residential customer for a billing period
in which the provider receives a written pledge, letter of intent, purchase
order, or other notification from an energy assistance provider that it is
forwarding sufficient payment to continue service; or
(3)
a delinquent residential customer on a day, or on a day
immediately preceding a day, when personnel or agents of the provider are
not available for the purpose of receiving payment or making collections and
reconnecting service.
(c)
Payment plans. Providers are encouraged to offer a deferred
payment plan for any delinquent bill of a residential customer rendered or
past due as set forth in paragraph (2)(D), concerning Deferred Payment Plans,
of §7.45 of this title (relating to Quality of Service) and a level or
average payment plan to all customers. Any level or average payment plan shall
use one of the following methods:
(1)
A level payment plan shall allow residential customers
to pay one-twelfth of that customer's estimated annual consumption at the
appropriate customer class rates each month, with provisions for annual adjustments
as may be determined based on actual gas use.
(2)
An average payment plan shall allow residential customers
to pay one-twelfth of the sum of the customer's current month's consumption
plus the previous 11 months consumption (or, for a new customer, an estimate)
at the appropriate customer class rates each month, plus a portion of any
unbilled balance.
(3)
If a customer does not fulfill the terms and obligations
of a level or average payment plan, a provider that is a gas utility shall
have the right to disconnect service to that customer pursuant to paragraph
(4), concerning Discontinuance of Service, of §7.45 of this title (relating
to Quality of Service), unless disconnection is prohibited under subsection
(b) of this section.
(4)
A provider that is a gas utility may require a deposit
from all customers entering into level or average payment plans pursuant to
the requirements of paragraph (5), concerning Applicant Deposit, of §7.45
of this title (relating to Quality of Service). The gas utility shall include
the amount already deposited by the customer in calculating a deposit required
under this paragraph. The gas utility shall pay interest on the deposit and
may retain the deposit for the duration of the level or average payment plan.
(d)
Notice. Each October, utilities shall give a copy of this
rule to:
(1)
the social services agencies that distribute funds from
the Low Income Home Energy Assistance Program within its service area;
(2)
any other social service agency of which the provider is
aware that provides financial assistance to low income customers in its service
area;
(3)
any customers who are owners, operators, or managers of
master metered systems; and
(4)
all other customers of the provider.
(e)
In addition to the minimum standards specified in this
section, providers may adopt additional or alternative requirements if the
provider files a tariff with the Commission pursuant to §7.44 of this
title (relating to Filing of Tariffs). The Commission shall review the tariff
to ensure that at least the minimum standards of this section are met.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State, on February 22, 2001.
TRD-200101117
Mary Ross McDonald
Deputy General Counsel
Railroad Commission of Texas
Earliest possible date of adoption: April 8, 2001
For further information, please call: (512) 475-1295
Chapter 25.
SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS
The Public Utility Commission of Texas (commission) proposes amendments
to §25.5, relating to Definitions, §25.191, relating to Transmission
Service Requirements, §25.192, relating to Transmission Service Rates;
new §25.193, relating to Distribution Service Provider Transmission Cost
Recovery Factors (TCRF); amendments to §25.195, relating to Terms and
Conditions for Transmission Service, §25.196, relating to Functional
Unbundling, §25.198, relating to Initiating Transmission Service, §25.200,
relating to Load Shedding, Curtailments, and Redispatch, §25.202, relating
to Billing and Payment for Transmission Service and Ancillary Services, §25.203,
relating to Alternative Dispute Resolution (ADR); and new §25.361, relating
to Electric Reliability Council of Texas (ERCOT). The proposed amendments
and new rules will revise the commission's transmission rules consistent with
the new ERCOT market design. Project Number 23157 has been assigned to this
proceeding.
Under this project, and for the same purpose, the commission is also repealing
existing §25.193, relating to Procedures for Modifying Transmission Rates, §25.194,
relating to Determining Peak Load and Transmission Adequacy, §25.197,
relating to ERCOT Independent System Operator, §25.201, relating to Ancillary
Services, and §25.204, relating to Summary of Required Filings.
The commission is proposing a new §25.193, relating to Distribution
Service Provider Transmission Cost Recovery Factors (TCRF). This provision,
consistent with the commission's consideration of transmission costs in Docket
Number 22344
Generic Issues Associated with Applications
for Approval of Unbundled Cost of Service Rate Pursuant to PURA §39.201
and P.U.C. Subst. R. 25.344
, would allow a distribution service provider
to pass on changes in its transmission costs to its customers through the
use of a TCRF. The provision would also allow a distribution service provider
to update its class allocators to allocate transmission costs when the TCRF
is adjusted due to a change in transmission costs.
The commission is also proposing a new §25.361, relating to Electric
Reliability Council of Texas (ERCOT ) for the purpose of relocating and revising
provisions currently found in existing §25.197, relating to ERCOT Independent
System Operator, which is proposed for repeal at this time.
The commission seeks comments from interested persons on the proposed new
rules and amendments to existing rules. Parties should organize their comments
in a manner that parallels the organization of the proposed rules. In addition,
the commission invites comments on the following questions:
Question Number 1:
Should the commission eliminate the proposed §25.196(d), formerly §25.196(b)(4),
that limits construction of new generation by a transmission service provider's
affiliate in the transmission service provider's service areas? If not, why
should it be continued, and for how long?
Question Number 2:
How should the rules accommodate the special financing rules of utilities
that use tax-exempt financing?
Jan Bargen, Senior Policy Analyst, Policy Development Division, has determined
that for each year of the first five-year period the proposed sections are
in effect there will be no fiscal implications for state or local government
as a result of enforcing or administering the sections.
Ms. Bargen has determined that for each year of the first five years the
proposed sections are in effect the public benefit anticipated as a result
of enforcing the sections will be enhanced wholesale and retail competition
in the sale of electricity within the ERCOT region. There will be no effect
on small businesses or micro-businesses as a result of enforcing these sections.
There is no anticipated economic cost to persons who are required to comply
with the sections as proposed.
Ms. Bargen has also determined that for each year of the first five years
the proposed sections are in effect there should be no effect on a local economy,
and, therefore, no local employment impact statement is required under Administrative
Procedure Act, §2001.022.
The commission staff will conduct a public hearing on this rulemaking under
Government Code, §2001.029 at the commission's offices, located in the
William B. Travis Building, 1701 North Congress Avenue, Austin, Texas 78701,
on Friday, April 13, 2001 at 9:30 a.m. in the seventh floor Commissioners'
Hearing Room.
When commenting on specific subsections of the proposed rule(s), parties
are encouraged to describe "best practice" examples of regulatory policies,
and their rationale, that have been proposed or implemented successfully in
other states already undergoing electric industry restructuring, if the parties
believe that Texas would benefit from application of the same policies. The
commission is only interested in receiving "leading edge" examples which are
specifically related and directly applicable to the Texas statute, rather
than broad citations to other state restructuring efforts.
Comments on the proposed amendments and new rules (16 copies) may be submitted
to the Filing Clerk, Public Utility Commission of Texas, 1701 North Congress
Avenue, P.O. Box 13326, Austin, Texas 78711-3326, within 21 days after publication.
Reply comments may be submitted within 33 days after publication. The commission
invites specific comments regarding the costs associated with, and benefits
that will be gained by, implementation of the proposed sections. The commission
will consider the costs and benefits in deciding whether to adopt the proposed
sections. All comments should refer to Project Number 23157.
Subchapter A. GENERAL PROVISIONS
16 TAC §25.5
This amendment is proposed under the Public Utility Regulatory
Act, Texas Utilities Code Annotated, §14.002 (Vernon 1998, Supplement
2001) (PURA), which provides the Public Utility Commission with the authority
to make and enforce rules reasonably required in the exercise of its powers
and jurisdiction. In addition, in proposing to revise the commission's transmission
rules consistent with the new ERCOT market design, the commission relies on
the following PURA provisions: §35.002, which specifies the providers
of generation that may compete for the business of selling power at wholesale; §35.004,
which relates to the provision of wholesale transmission service; §35.005,
which relates to the commission's authority to order transmission service; §35.006,
which requires the commission to adopt rules relating to wholesale transmission
service, rates, and access; §35.007, which relates to the filing of a
compliance tariff by a utility that owns or operates a transmission facility; §35.008,
which grants the commission authority to order nonbinding alternative dispute
resolution for parties to a dispute concerning wholesale transmission service; §39.001(a)-(b),
which set out a legislative finding that a competitive retail electric market
is in the public interest; §39.151, which requires the commission to
certify independent organizations to ensure access to the transmission and
distribution systems for all buyers and sellers of electricity on nondiscriminatory
terms, ensure the reliability and adequacy of the regional electrical network,
ensure that information relating to a customer's choice of retail electric
provider is conveyed in a timely manner to the persons who need that information,
and ensure that electricity production and delivery are accurately accounted
for among the generators and wholesale buyers and sellers in the region; and §39.203(a),
which relates to a transmission and distribution utility's required provision
of transmission and distribution service.
Cross Reference to Statutes: PURA §§14.002, 35.002, 35.004-35.008,
39.001(a)-(b), 39.151, and 39.203(a).
§25.5.Definitions.
The following words and terms, when used in this chapter, shall have
the following meanings, unless the context clearly indicates otherwise:
(1)-(9)
(No change.)
[(10)
Ancillary service provider--An electric
utility, municipally-owned utility, electric cooperative, or power generation
company that provides an ancillary service or an independent system operator
that provides such services.]
(10)
[
(11)
[
(12)
[
(A)
match, at all times, the power output of the generators
within the electric power system(s) and capacity and energy purchased from
entities outside the electric power system(s), with the load within the electric
power system(s);
(B)
maintain, within the limits of good utility practice, scheduled
interchange with other control areas;
(C)
maintain the frequency of the electric power system(s)
within reasonable limits in accordance with good utility practice; and
(D)
obtain sufficient generating capacity to maintain operating
reserves in accordance with good utility practice.
(13)
[
(14)
[
(15)
[
(16)
[
(17)
[
(18)
[
(19)
[
(20)
Distribution service provider (DSP)--an
electric utility, municipally-owned utility, or electric cooperative that
owns or operates for compensation in this state equipment or facilities to
distribute electricity.
(21)-(23)
(No change.)
[(24)
Eligible ancillary service customer--Any
person, municipally-owned utility, or electric cooperative that is an eligible
transmission service customer.]
(24)
[
(25)
ERCOT protocols--Body of procedures developed
by ERCOT and approved by the commission, to maintain the reliability of the
regional electric network and account for the production and delivery of electricity
among resources and market participants.
(26)-(41)
(No change.)
(42)
Person--
Includes an individual, a partnership of
two or more persons having a joint or common interest, a mutual or cooperative
association, and a corporation, but does not include an electric cooperative.
[
[(43)
Planned resources--Generation resources
owned, controlled, or purchased by a transmission customer, and designated
as planned resources for the purpose of serving load.]
[(44)
Planned transmission service--A service
that permits a transmission service customer to use the transmission service
providers' transmission systems for the delivery of power from planned resources
to loads on the same basis as the transmission service providers use their
transmission systems to reliably serve their native load customers.]
(43)
[
(44)
[
(45)
[
(A)
generates electricity that is intended to be sold at wholesale;
(B)
does not own a transmission or distribution facility in
this state, other than an essential interconnecting facility, a facility not
dedicated to public use, or a facility otherwise excluded from the definition
of "electric utility" under this section; and
(C)
does not have a certificated service area, although its
affiliated electric utility or transmission and distribution utility may have
a certificated service area.
(46)
[
(47)
[
[(50)
Pre-existing transmission contract--A
contract for transmission or wheeling services that took effect prior to March
4, 1996.]
(48)
[
(49)
[
(50)
[
(51)
[
(52)
[
(53)
[
(54)
[
(55)
[
(56)
[
(57)
[
(58)
[
(59)
[
(60)
[
(61)
[
(62)
[
(63)
[
(64)
[
(65)
[
(66)
[
(67)
[
(68)
[
(69)
[
(70)
[
(71)
[
(72)
[
(73)
[
(74)
[
(75)
[
(76)
[
(77)
[
[(81)
Transmission facilities study--An engineering
study conducted by a transmission service provider subsequent to a system
security study to determine the required modifications to its transmission
system, including the detailed costs and scheduled completion date for such
modifications, that will be required to provide a requested transmission service.]
[(82)
Transmission interconnection agreement--An
agreement that sets forth requirements for physical connection or other terms
relating to electrical connection between an eligible transmission service
customer and a transmission service provider, including contracts or tariffs
for transmission service that include provisions for interconnection. Transmission
service providers must have such an agreement with all transmission service
providers to whom they are physically connected.]
(78)
[
[(84)
Transmission losses--Energy losses resulting
from the transmission of power.]
(79)
[
(80)
[
(81)
[
(82)
[
[(89)
Transmission system security study--An
assessment by a transmission service provider of the adequacy of the transmission
system to accommodate a request for transmission service and whether any costs
are anticipated in order to provide transmission service.]
[(90)
Transmission upgrade--A modification
or addition to transmission facilities owned or operated by a transmission
service provider.]
[(91)
Unplanned resources--Generation resources
owned, controlled or purchased by the transmission customer that have not
been designated as planned resources.]
[(92)
Unplanned transmission service--A service
that permits a transmission service customer to use the transmission service
providers' transmission systems to deliver energy to its loads from resources
that have not been designated as the transmission service customer's planned
resources.]
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of
the Secretary of State, on February 23, 2001.
TRD-200101139
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: April 8, 2001
For further information, please call: (512) 936-7308
1.
OPEN-ACCESS COMPARABLE TRANSMISSION SERVICE FOR ELECTRIC UTILITIES IN THE ELECTRIC RELIABILITY COUNCIL OF TEXAS
16 TAC §§25.191-25.193, 25.195, 25.196, 25.198, 25.200, 25.202, 25.203
These amendments and new rule are proposed under the Public
Utility Regulatory Act, Texas Utilities Code Annotated §14.002 (Vernon
1998, Supplement 2001) (PURA), which provides the Public Utility Commission
with the authority to make and enforce rules reasonably required in the exercise
of its powers and jurisdiction. In addition, in proposing to revise the commission's
transmission rules consistent with the new ERCOT market design, the commission
relies on the following PURA provisions: §35.002, which specifies the
providers of generation that may compete for the business of selling power
at wholesale; §35.004, which relates to the provision of wholesale transmission
service; §35.005, which relates to the commission's authority to order
transmission service; §35.006, which requires the commission to adopt
rules relating to wholesale transmission service, rates, and access; §35.007,
which relates to the filing of a compliance tariff by a utility that owns
or operates a transmission facility; §35.008, which grants the commission
authority to order nonbinding alternative dispute resolution for parties to
a dispute concerning wholesale transmission service; §39.001(a)-(b),
which set out a legislative finding that a competitive retail electric market
is in the public interest; §39.151, which requires the commission to
certify independent organizations to ensure access to the transmission and
distribution systems for all buyers and sellers of electricity on nondiscriminatory
terms, ensure the reliability and adequacy of the regional electrical network,
ensure that information relating to a customer's choice of retail electric
provider is conveyed in a timely manner to the persons who need that information,
and ensure that electricity production and delivery are accurately accounted
for among the generators and wholesale buyers and sellers in the region; and §39.203(a),
which relates to a transmission and distribution utility's required provision
of transmission and distribution service.
Cross Reference to Statutes: PURA §§14.002, 35.002, 35.004-35.008,
39.001(a)-(b), 39.151, and 39.203(a).
§25.191.Transmission Service Requirements.
(a)
Purpose. The purpose of Subchapter I, Division 1 of this
chapter (relating to Transmission and Distribution), is to clearly state the
terms and conditions that govern [
(1)
facilitate robust
[
(2)-(3)
(No change.)
(b)
Applicability. Unless otherwise explicitly
provided, Division 1 of this subchapter (relating to Open-Access Comparable
Transmission Service for Electric Utilities in the Electric Reliability Council
of Texas) applies to transmission service providers (TSPs), as defined in §25.5
of this title (relating to Definitions), which include river authorities and
other electric utilities, municipally-owned utilities, and electric cooperatives.
The transmission service standards described in Division 1 of this subchapter
also apply to transmission service to, from, and over the direct-current interconnections
between the Electric Reliability Council of Texas (ERCOT) region and areas
outside of the ERCOT region, to the extent that tariffs for such service incorporating
the terms of Division 1 of this subchapter are approved for the transmission
providers that own an interest in the interconnections.
(c)
[
[(c)
Definitions. The following terms, when
used in Division 1 of this subchapter have the following meanings, unless
the context clearly indicates otherwise:]
[(1)
Planned transmission service - A service that permits
a transmission service customer to use the transmission service providers'
transmission systems for the delivery of power from planned resources to loads
on the same basis as the transmission service providers use their transmission
systems to reliably serve their native load customers. This service shall
have priority over all unplanned transmission service.]
[(2)
Unplanned transmission service - A service that permits
a transmission service customer to use the transmission service providers'
transmission systems to deliver energy to its loads from resources that have
not been designated as the transmission service customer's planned resources.
This service permits such energy to be delivered if sufficient transmission
capacity is available to support the requested service.]
[(d)
Application. Unless otherwise explicitly
provided, Division 1 of this subchapter applies to electric utilities in ERCOT,
as the term "electric utility" is defined in the Public Utility Regulatory
Act §35.001. The transmission service standards described in Division
1 of this subchapter also apply to transmission service to, from, and over
the direct-current interconnections between ERCOT and the Southwest Power
Pool, to the extent that tariffs for such service incorporating the terms
of Division 1 of this subchapter are approved for the electric utilities that
own an interest in the interconnections. ]
(d)
[
(1)
Where a TSP
[
(2)
The obligation to provide comparable wholesale transmission
service applies to
a TSP
[
(A)
A
TSP or a DSP
[
(B)
A TSP or DSP shall
[
(C)
A DSP shall file a tariff for wholesale
transmission service at distribution level voltage.
[(3)
The obligation to provide transmission
service includes the obligation to provide reactive power support to maintain
adequate system voltage support and control.]
(3)
[
(4)
A TSP shall interconnect with DSPs to
serve retail loads and with retail customers that request service at transmission
voltage. Requests for interconnection by a retail customer or REP shall be
in accordance with the standard terms and conditions for delivery service,
under §25.214 of this title (relating to Terms and Conditions of Retail
Delivery Service Provided by Investor Owned Transmission and Distribution
Utilities) and §25.215 of this title (relating to Terms and Conditions
of Access by a Competitive Retailer to the Delivery System of a Municipally
Owned Utility or Electric Cooperative that has Implemented Customer Choice).
[(5)
Service provided pursuant to Division
1 of this subchapter allows a transmission service customer to deliver energy
from its planned resources to serve loads within ERCOT, deliver unplanned
energy to its loads without an additional facilities charge, deliver energy
to third parties in connection with a sale of energy to loads within ERCOT,
and transmit power over transmission facilities within ERCOT for export from
ERCOT. ]
[(6)
All transmission service and ancillary
services shall be provided on a non- discriminatory basis, in a manner that
is comparable to the service provider's use of such services to serve its
native load customers.]
[(f)
Resale of transmission rights. A transmission
service customer that holds transmission and ancillary transmission service
rights under Division 1 of this subchapter may resell those rights to another
eligible transmission service customer.]
[(g)
Redispatch. ERCOT utilities shall provide
redispatch services in accordance with §25.200 of this title (relating
to Load Shedding, Curtailments, and Redispatch).]
[(h)
Scheduling. Control-area utilities shall
schedule a transmission service customer's resources and accommodate changes
to schedules requested by transmission service customers. Control area utilities
shall implement requested schedules and changes to schedules for third party
transmission service customers upon the same terms and conditions and within
the same time frames applied by control area utilities in scheduling resources
to serve their native load customers.]
§25.192.Transmission Service Rates.
(a)
Tariffs. Each transmission service provider
(TSP) shall file a tariff for transmission service to establish its rates
and other terms and conditions and shall apply its tariffs and rates on a
non-discriminatory basis. The tariff shall apply to all distribution service
providers (DSPs) and any entity scheduling the export of power from the Electric
Reliability Council of Texas (ERCOT) region.
(b)
[
(1)
A TSP's transmission rate shall be calculated as its
commission- approved transmission cost of service divided by the average of
ERCOT coincident peak demand for the months of June, July, August and September
(4CP). A TSP's transmission rate shall remain in effect until the commission
approves a new rate. The TSP's annual rate shall be converted to monthly,
weekly, daily, and hourly rates. The monthly transmission service charge to
be paid by each DSP is the product of the TSP's monthly rate as specified
in its tariff and the DSP's previous year's average of the 4CP demand that
is coincident with the ERCOT 4CP.
[
[(A)
For each transmission service provider,
an access rate will be calculated by dividing the transmission service provider's
annual transmission cost of service by the total ERCOT load, as calculated
in accordance with this section.]
[(B)
Each transmission service customer taking
annual planned transmission service will pay an access charge to transmission
service providers, calculated by multiplying the applicable access rate by
the transmission service customer's peak load, as calculated in accordance
with this section.]
(2)
Payments for transmission services shall be consistent
with commission orders, approved tariffs, and §25.202 of this title (relating
to Commercial Terms for Transmission Service).
[
[(3)
The access charge for the short-term
planned service described in §25.198 of this title (relating to Initiating
Transmission Service) will be the prorated annual cost of transmission service
for each transmission service provider and will be charged on the basis of
the megawatts of transmission service that are reserved. A transmission service
customer will be obligated to pay all transmission service providers for this
service upon making a request, whether the customer uses the service or not.
Transmission service providers shall file tariffs for this service for commission
approval. ]
(c)
[
(1)
The following facilities are deemed to be transmission
facilities:
(A)
power lines, substations,
reactive devices,
and associated facilities, operated at 60 kilovolts or above, including radial
lines operated at or above 60 kilovolts, except the step-up transformers and
a protective device associated with the interconnection from a generating
station to the transmission network;
(B)
substation facilities on the high side of the transformer,
in a substation where power is transformed from a voltage higher than 60 kilovolts
to a voltage lower than 60 kilovolts;
(C)
the portion of the direct-current (DC) interconnections
with
areas outside of the ERCOT region
[
(D)
capacitors
and other reactive devices
that are
operated at a voltage of 60 kilovolts or below, if they are located in a distribution
substation, the load at the substation has a power factor in excess of 0.95
as measured or calculated at the transmission voltage level
without
the capacitors, and the capacitors are controlled by an operator or automatically
switched in response to transmission voltage.
[(2)
In determining the annual transmission
cost of service under this subsection, the following expenses shall not be
included:]
[(A)
expenses of an electric utility that are otherwise included
in its annual transmission cost for service under any existing transmission
contract (including the value of goods and services exchanged for transmission
service); ]
[(B)
transmission expenses paid to another electric utility
in accordance with this section; and]
[(C)
expenses for transmission service outside of ERCOT.]
(2)
[
(3)
[
(4)
[
(d)
[
[(d)
Transmission revenue. The access charges
prescribed in subsection (a) of this section are intended to provide each
transmission service provider an opportunity to recover its transmission cost
of service. Revenue from the transmission of electric energy out of ERCOT
over the DC ties that is not recovered through rates for annual planned transmission
service and revenue from monthly, weekly, and daily planned transmission service
shall be credited to all transmission service customers as a reduction in
the transmission cost of service for transmission service providers that receive
the revenue.]
[(e)
Compensation for losses. A transmission
service customer that uses transmission service to transmit power to its loads
shall compensate affected control-area utilities for energy losses resulting
from such transmission service. Losses shall be calculated by the independent
system operator under a method approved by the commission. The method of compensation
for losses shall provide reasonably accurate compensation for the cost of
supplying losses incurred under different system conditions.]
[(f)
Independent system operator charges.
Transmission service customers shall incur an ISO fee for planned transmission
service and unplanned transmission service, payable to the independent system
operator. Changes in the fee are subject to approval by the commission.]
(e)
[
(1)
A transmission service customer shall be assessed
a transmission service charge for the use of the ERCOT transmission system
in exporting power from ERCOT based on the megawatts that are exported, the
duration of the transaction and the rates established under subsections (c)
and (d) of this section. Billing intervals shall consist of a year, month,
week, day, or hour.
[
(2)
Transmission service customers exporting power from
the
ERCOT
region
[
(3)
The monthly on-peak
transmission rate
[
(4)
The DSP or an entity scheduling the export
of power over a high voltage direct current tie is solely responsible to the
TSP for payment of transmission service charges under this subsection.
(5)
A transmission service customer's charges
for use of the ERCOT transmission system for export purposes on a monthly
basis shall not exceed the annual transmission charge for the transaction.
(f)
Transmission revenue. Revenue from the
transmission of electric energy out of the ERCOT region over the DC ties that
is not recovered through rates for transmission service and is charged in
accordance with subsection (e) of this section shall be credited to all transmission
service customers as a reduction in the transmission cost of service for TSPs
that receive the revenue.
(g)
Revision of transmission rates. Each TSP
in the ERCOT region shall periodically revise its transmission service rates
to reflect changes in the cost of providing such services. Any request for
a change in transmission rates shall comply with the filing requirements established
by the commission under this section.
(1)
Each TSP in the ERCOT region may on an annual basis update
its transmission rates to reflect changes in its invested capital. If the
TSP elects to update its transmission rates, the new rates shall reflect the
addition and retirement of transmission facilities and include appropriate
depreciation, federal income tax and other associated taxes, and the commission-allowed
rate of return on such facilities as well as changes in loads.
(2)
An update of transmission rates under paragraph (1) of
this subsection shall be subject to reconciliation at the next complete review
of the TSP's transmission cost of service. The commission shall review whether
the cost of transmission plant additions are reasonable and necessary at the
next complete review of the TSP's transmission cost of service. Any over-
recovery of costs, as a result of the update, is subject to refund.
(3)
The commission may prescribe a schedule for providers of
transmission services to file proceedings to revise the rates for such services.
(4)
A DSP may expeditiously pass through to its customers changes
in wholesale transmission rates approved by the commission, pursuant to §25.193
of this title (relating to Distribution Service Provider Transmission Cost
Recovery Factors (TCRF)).
(5)
TSPs shall file reports that will permit the commission
to monitor their transmission costs and revenues, in accordance with any filing
requirements and schedules prescribed by the commission.
§25.193.Distribution Service Provider Transmission Cost Recovery Factors (TCRF).
(a)
Application. The provisions of this section apply to all
investor-owned distribution service providers providing distribution service
within ERCOT to retail electric providers and other customers of the distribution
system.
(b)
TCRF authorized. A distribution service provider subject
to this section that is billed for transmission service by a transmission
service provider (TSP) pursuant to §25.192 of this title (relating to
Transmission Service Rates) may be allowed to include within its tariff a
TCRF clause which authorizes the distribution service provider to charge or
credit its customer for the cost of transmission service to the extent that
such costs vary from the transmission service cost utilized to fix the rates
of the distribution provider. The terms and conditions of such TCRF clause
shall be approved by an order of the commission.
(c)
TCRF Formula. The TCRF for each class shall be computed
pursuant to the following formula:
Figure: 16 TAC §25.193(c)
(d)
Revision of allocator. When the TCRF is subject to change
as a result of a change in the transmission charges imposed on the distribution
service provider by a TSP, the distribution provider may petition the commission
for approval of the use of updated allocators. Upon petition by the distribution
service provider to update allocators, the distribution service provider may,
without commission approval, revise its TCRF on an interim basis to reflect
the updated allocators. The commission shall rule on the petition within 90
days. To the extent that the final TCRF for any class of customers is less
than an interim TCRF implemented by the distribution service provider, the
distribution service provider shall refund the overcollection as directed
by the commission.
(e)
TCRF charges. The TCRF charge shall remain in effect until
transmission rates charged by a TSP to the distribution service provider are
changed or the rates of the distribution service provider change, following
a rate proceeding that it or the commission initiates.
(f)
Reports. The distribution service provider shall maintain
and provide to the commission, semi-annual reports containing all information
required to monitor the costs recovered through the TCRF clause. This information
includes, but is not limited to, the total estimated TCRF cost for each month,
the actual TCRF cost on a cumulative basis, and total revenues resulting from
the TCRF.
§25.195.Terms and Conditions for Transmission Service.
(a)
Transmission service requirements. As a condition to obtaining
transmission service, a transmission service customer that owns electrical
facilities in
the Electric Reliability Council of Texas (ERCOT) region
[
[(1)
operate as a control area under applicable
guidelines adopted by the national reliability organization and the independent
system operator for Electric Reliability Council of Texas; or]
[(2)
satisfy its control area requirements,
including the provision of all necessary ancillary services by contracting
with the transmission service provider or by purchasing the necessary services
from another service provider or non-utility provider of such services, in
accordance with good utility practice.]
(b)
Transmission service provider responsibilities. The
TSP
[
[(c)
Transmission service customer redispatch
obligation. A transmission service customer will redispatch its resources
to provide annual planned transmission service to third parties. The redispatch
of resources pursuant to Division 1 of this subchapter shall be on a non-discriminatory
basis among all transmission service customers and transmission service providers.]
[(d)
Priority for transmission service applications.
Planned transmission service shall have priority over unplanned transmission
service, and annual planned transmission service shall have priority over
planned transmission service of a shorter duration. ]
[(1)
Subject to the foregoing priorities, for applications
for planned or unplanned transmission service, complete applications filed
earlier with the independent system operator shall have priority over applications
that are filed later. Requests for annual planned transmission service filed
on or before the date prescribed in this subchapter will be accorded equal
priority.]
[(2)
Where a transmission service customer is using annual
planned transmission service for a resource that becomes unavailable due to
an unplanned outage or the expiration of a power supply contract, the transmission
service customer shall have priority, in using the same transmission capacity
to transmit power from a replacement resource, over other requests for unplanned
transmission service or planned transmission service of a shorter duration.
]
(c)
[
[(1)
If, in order to provide ancillary services,
an electric utility must construct new facilities, the ancillary services
customer may be required to enter a long-term contract for ancillary service
or make a contribution in aid of construction to cover all or a part of the
cost of acquiring the new facilities, to the extent that the acquisition of
the additional facilities is for the customer's benefit.]
(1)
[
(A)
An affected
TSP
[
(B)
If the new generating source is completed and the transmission
service customer begins to take the requested transmission service, the
TSP
[
(2)
[
(d)
[
[(g)
Filing of contracts. Electric utilities
shall file with the commission all new interconnection agreements and agreements
involving the sale or purchase of electric utility generation, transmission,
or ancillary services at wholesale within 30 days of their execution. Upon
a showing of good cause, appropriate portions of the filings required under
this subsection may be subject to provisions of confidentiality to protect
competitively sensitive commercial or financial information. Interconnection
agreements are subject to commission review and approval upon request by any
party to the agreement.]
§25.196.Functional Unbundling.
(a)
Applicability. This section applies to transmission
service providers (TSP), as defined in §25.5 (relating to Definitions),
which include river authorities and other electric utilities, municipally
owned utilities, and electric cooperatives.
[
(b)
Separation of functions. Each
TSP
[
(1)
Personnel of a TSP
[
(2)
TSPs
[
[(3)
An electric utility with an affiliate
that owns a generating facility in the electric utility's retail service area
shall not buy power from the affiliate, either directly or through a power
marketer, without express authorization from the commission. This provision
does not apply to any purchase agreement that was entered prior to the effective
date of this section.]
[(4)
An affiliate of an electric utility shall
not construct a new generating plant in the electric utility's retail service
area, either directly or through an exempt wholesale generator or qualifying
facility, unless the facility is approved in accordance with §25.170
of this title (relating to Hearing on the Final Integrated Resource Plan)
or the electric utility meets the following conditions:]
[(A)
the electric utility separates its generation operations
and transmission operations into separate corporate entities, in a manner
approved by the commission; and ]
[(B)
the generation and transmission operations of the electric
utility and its affiliates operate under a code of conduct approved by the
commission.]
[(5)
Paragraph (4) of this subsection shall
not apply to any generating facility for which an affiliate of an electric
utility has made, prior to March 11, 1999, a firm commitment for construction
of such a facility under a contract with an unrelated person or submitted
a written offer or proposal to an unrelated person for the construction of
such a facility.]
[(6)
If the commission finds that an electric
utility has violated the rules in Division 1 of this subchapter, it may impose
an appropriate penalty, including the following: ]
[(A)
assess an administrative penalty under the Public Utility
Regulatory Act §15.023; or]
[(B)
prohibit the utility and any affiliate of the utility
from constructing a new generating facility in the electric utility's retail
service area, unless the facility is approved in accordance with §25.170
of this title or §25.171 of this title (relating to Certificate of Convenience
and Necessity for Generation Facilities). ]
(c)
Standards of conduct.
A TSP subject to subsection
(b) of this section
[
(1)
The employees of
a TSP who
[
(A)
(No change.)
(B)
have preferential access to the
TSP's
[
(C)
have preferential access to information about the
TSP's
[
(D)
obtain information about the
TSP's
[
(2)
To the maximum extent practicable, employees of
a
TSP
[
(3)
Information concerning transfers of persons between an
organizational unit that is responsible for transmission system operations
and a unit that is responsible for wholesale merchant functions shall be provided
to
ERCOT
[
(4)
If an employee of
a TSP
[
(5)
Employees of
a TSP
[
(6)-(7)
(No change.)
(d)
New construction of generation. An affiliate of TSP
subject to the rules of Division 1 of this subchapter (relating to Open-Access
Comparable Transmission Service for Electric Utilities in the Electric Reliability
Council of Texas) shall not begin to construct a new generating plant in the
TSP's service area, either directly or through an exempt wholesale generator
or qualifying facility, unless the TSP meets the following conditions:
[
(1)
the TSP separates its generation operations
and transmission operations into separate corporate entities, in a manner
approved by the commission; and
(2)
the generation and transmission operations
of the TSP and its affiliates operate under a code of conduct approved by
the commission.
[(e)
Standard of due diligence. If a transmission
or ancillary service provider or customer is required to complete activities
or to negotiate agreements as a condition of service, each party shall use
due diligence to complete these actions within a reasonable time.]
§25.198.Initiating Transmission Service.
(a)
Initiating service. Where a transmission service customer
uses the transmission facilities in the Electric Reliability Council of Texas
(ERCOT), whether its own facilities or those of another transmission service
provider
(TSP)
,
to serve load or to make
[
(b)
Conditions precedent for receiving service. Subject to
the terms and conditions of this section
and in accordance with the commission-approved
ERCOT protocols
, the
TSP
[
(1)
the [
(2)
the [
(3)
if the [
[(4)
the eligible transmission service customer
has arranged for ancillary services necessary for the transaction; and]
[(5)
if the eligible transmission service
customer is responsible for serving wholesale load, it shall maintain a power
factor of 95% or greater at each point of interconnection.]
(c)
Application procedures for [
(1)
The transmission service customer shall provide all
information deemed necessary by ERCOT to evaluate the transmission service.
[
[(A)
the identity, address, e-mail address,
telephone number and facsimile number of the party requesting service and
the name of a contact person to deal with matters relating to the application;]
[(B)
a statement that the party requesting
service is, or will be upon commencement of service, an eligible transmission
service customer under Division 1 of this subchapter (relating to Transmission
and Distribution);]
[(C)
a description of the load to be served
(including a five-year forecast of summer and winter peak load and resource
requirements beginning with the first year after the service is scheduled
to commence, in the format prescribed by the independent system operator);]
[(D)
a description of planned resources (current
and five-year projection), which shall include, for each resource:]
[(i)
location, unit size and amount of capacity from a unit
to be designated as a resource,]
[(ii)
reactive power capability (both leading and lagging)
of all generators,]
[(iii)
operating restrictions, including:]
[(I)
any periods of restricted operations during the year;]
[(II)
minimum loading level of unit,]
[(III)
normal operating level of unit, and]
[(IV)
any must-run unit designations required for system reliability
or contract reasons,]
[(iv)
a description of purchased power designated as a resource,
including source of supply, control area location, transmission arrangements
and, if applicable, delivery points into ERCOT,]
[(v)
to the extent arrangements have been made for ancillary
services, the identity of the providers of ancillary services,]
[(vi)
the service commencement date of the requested transmission
service and service termination date or duration of service,]
[(vii)
where the transmission service customer serving the
load does not own the resource, a copy of the contract between the transmission
service customer and the owner of the resource, which may be redacted to remove
market- sensitive information not needed in assessing the request for service,
and]
[(viii)
any other information designated by the independent
system operator as reasonably necessary to evaluate the ability of the interconnected
ERCOT transmission systems to reliably accommodate the requested service.]
[(2)
The independent system operator shall
provide to affected transmission service providers the information needed
for them to evaluate the request.]
(2)
[
(3)
[
(4)
[
(5)
[
(6)
When a transmission service customer applies
for transmission service for a new resource under this section, ERCOT shall
notify affected TSPs of the application and request comments concerning the
scope of any system security screening study. The study will be used to determine
the feasibility of integrating such new resource into the TSPs' transmission
system, and whether any upgrades of facilities providing transmission or ancillary
services are needed. ERCOT will perform the system security screening study.
(A)
ERCOT shall complete the system security screening study
and provide the results to the transmission service customer within 60 business
days after the receipt of an executed study agreement and receipt from the
transmission service customer of all the data necessary to complete the study.
In the event ERCOT is unable to complete the study within the 60-day period,
it will provide the transmission service customer a written explanation of
when the study will be completed and the reasons for the delay.
(B)
The requesting transmission service customer shall be responsible
for the cost of the system security screening study and shall be provided
with the results thereof, including relevant work papers.
(C)
ERCOT will use a methodology consistent with good utility
practice to conduct the system security screening study and shall coordinate
with affected TSPs as needed in determining the most efficient means for all
TSPs in the ERCOT region to assure feasibility of transmission service.
[(7)
Unplanned transmission service transactions
of a duration of 30 days may be converted to planned transmission service
transactions upon approval of an application submitted pursuant to subsection
(d) of this section. The participants to such a transaction are responsible
for the costs of feasibility analysis.]
[(d)
Application procedures for other planned
transmission service. An eligible transmission service customer may request
monthly, weekly, or daily planned transmission service in connection with
a change in its designated planned resources or other transmission needs.
The independent system operator may establish hourly planned transmission
service, if it deems that it is feasible.]
[(1)
The independent system operator shall determine maximum
and minimum lead times for submitting requests for planned transmission service
other than annual planned transmission service.]
[(2)
The application must provide information similar to that
required for annual planned transmission service for the period that the planned
transmission service is to be effective.]
[(3)
When the independent system operator determines that the
service can be provided and a system security study is not required it will
notify the requesting transmission service customer and tender transmission
service.]
[(4)
The independent system operator shall develop charges
for planned transmission service under this subsection, in accordance with §25.192
of this title (relating to Transmission Service Rates). The transmission charges
shall be subject to commission approval.]
[(e)
Application for unplanned transmission
service. Eligible transmission service customers wishing to use the ERCOT
transmission system for unplanned transmission service must submit a request
for service to the independent system operator. The duration for unplanned
transactions is from one hour to 30 days. In no case shall unplanned transactions
be accepted for consideration more than 30 days in advance of the actual commencement
of service.]
[(1)
Requests for service must be submitted with at least the
lead times prescribed in subparagraphs (A)-(D) of this paragraph:]
[(A)
for hourly transactions, at least 20 minutes in advance,]
[(B)
for daily transactions, no later than 2:00 p.m. the day
before the transaction is to commence,]
[(C)
for weekly transactions, at least two days in advance,
and]
[(D)
for monthly transactions, at least four days in advance.]
[(2)
A response to a request for service will be made by the
independent system operator as soon as practical after the request is made.
Unless the parties agree to a different time frame, responses to requests
for unplanned transmission service shall be provided no later than the times
prescribed in subparagraphs (A)-(D) of this paragraph:]
[(A)
for hourly transactions, within 10 minutes of the request
for service,]
[(B)
for daily transactions, within four hours of the request
for service,]
[(C)
for weekly transactions, within 24 hours of the request
for service, and]
[(D)
for monthly transactions, within two days of the request
for service.]
[(3)
A request for a transaction will be analyzed first for
the next hour and allowed to start if no violations of the transmission operating
criteria are anticipated.]
[(4)
The following information shall be provided in connection
with an application for unplanned transmission service:]
[(A)
the identity, address, telephone number and facsimile
number of the party requesting service and contact person to deal with questions
concerning the application for service;]
[(B)
a statement that the party requesting service is, or will
be upon commencement of service, an eligible transmission service customer
under this section;]
[(C)
a description of the load to be served and the resources
serving the load, which shall include, for each resource:]
[(i)
location, unit size and amount of capacity from that unit
to be designated as resource,]
[(ii)
reactive power capability (both leading and lagging)
of all generators,]
[(iii)
operating restrictions, including minimum loading level
of unit, and normal operating level of unit,]
[(iv)
a description of purchased power designated as a resource
including source of supply, control area location, and, if applicable, delivery
points into ERCOT,]
[(v)
to the extent arrangements have been made for ancillary
services, the identity of the providers of ancillary services,]
[(vi)
when service is to begin and the anticipated duration,
and]
[(vii)
if the unplanned transmission service will result in
the transmission service customer's using different resources than its planned
resources, a statement of the effect of the unplanned transmission service
on the use of the planned resources.]
[(5)
The independent system operator will make every reasonable
attempt to begin the transactions as soon as possible to conform to the requested
commencement time. Operating restrictions, anticipated redispatch needs, the
potential for curtailment, and other related information, if known, will be
communicated to the requester to see if the transactions are still feasible
for the eligible transmission service customer given the known restrictions.]
[(6)
The independent system operator, at its discretion, may
take requests outside the timeframes prescribed in paragraph (1) of this subsection,
if practical given the current or expected operating conditions on the transmission
service providers' systems. The independent system operator may set longer
notification and response times than those prescribed in paragraphs (1) and
(2) of this subsection, during a system emergency, and shall periodically
review the notification and response times and may propose to the commission
revisions to those times. The independent system operator may put such revisions
into effect, pending action by the commission on its proposal.]
[(f)
System security study. When a transmission
service customer applies for planned transmission service for a new resource
under this section, the independent system operator shall notify affected
transmission service providers of the application and request comments from
them concerning the scope of any security study. The transmission service
customer and the independent system operator shall execute a joint study agreement
for performing a system security study to determine the feasibility of integrating
such new resource into the transmission service providers' transmission system,
and whether any upgrades of facilities providing transmission or ancillary
services are needed. The independent system operator will perform the security
study.]
[(1)
In performing the system security study, the independent
system operator shall apply the same methods and criteria that the transmission
service providers employ in integrating new resources or new loads.]
[(2)
The independent system operator shall complete the system
security study and provide the results to the transmission service customer
within 60 days after the receipt of the executed study agreement and receipt
from the transmission service customer of all the data necessary to complete
the study. In the event the independent system operator is unable to complete
the study within the 60 day period, it will provide the transmission service
customer a written explanation of when the study will be completed and the
reasons for the delay.]
[(3)
The requesting transmission service customer shall be
responsible for the cost of the system security study and shall be provided
with the results thereof, including relevant workpapers.]
[(4)
The independent system operator will use a methodology
consistent with good utility practice to conduct a system security study and
shall coordinate with affected transmission service providers as needed in
determining the most efficient means for all electric utilities in ERCOT to
assure feasibility of transmission service.]
(d)
[
(1)
The facilities study will be completed as soon as reasonably
practicable. If the
TSP
[
(2)
The transmission service customer shall be responsible
for the reasonable cost of the facilities study pursuant to the terms of the
facilities study agreement and shall be provided with the results of the facility
study, including relevant workpapers.
(3)
The TSP shall be responsible for the costs of any
planning, designing, and constructing of facilities associated with its addition
of new facilities used to provide transmission service. The TSP shall separately
book such costs.
[
(e)
[
(f)
[
(g)
[
(h)
[
(i)
[
(j)
[
§25.200.Load Shedding, Curtailments, and Redispatch.
(a)
Procedures.
The Electric Reliability Council of Texas
(ERCOT) shall implement
[
[(1)
Transmission service providers and transmission
service customers will comply with the load shedding and curtailment procedures
established under this section.]
[(2)
Transmission service providers and customers
will implement such programs during any period when the independent system
operator determines that a transmission capacity constraint exists and such
procedures are necessary to alleviate the constraint.]
[(3)
The transmission service provider will
notify the independent system operator in a timely manner of any scheduled
transmission facility interruption (e.g., scheduled maintenance).]
(b)
Congestion management principles. ERCOT
shall develop market mechanisms to manage transmission congestion.
(c)
[
[(1)
Any interruption shall be based on operational
factors and shall not accord a higher priority to the electric utility's native
load customers than to its customers taking transmission service. Priority
shall be accorded to transmission service customers in accordance with §25.195(d)
of this title (relating to Terms and Conditions for Transmission Service).]
(1)
[
[(3)
The independent system operator shall
determine whether a proposed redispatch is cost-effective and which transmission
service customer shall redispatch its generating resources to facilitate a
transaction.]
(2)
[
(3)
[
(4)
ERCOT shall keep records of the circumstances
requiring redispatch and the costs associated with each redispatch and file
annual reports with the commission, describing costs, frequency and causes
of redispatch. Costs for relieving capacity constraints shall be allocated
in a manner consistent with commission-approved ERCOT protocols.
[(c)
Cost responsibility for relieving capacity
constraints. Electric utilities in the Electric Reliability Council of Texas
(ERCOT) shall provide redispatch services on a non-discriminatory basis to
all wholesale market participants when necessary to preserve system reliability
or to alleviate transmission constraints that impede wholesale generation
and transmission transactions. The independent system operator shall keep
a record of the circumstances requiring redispatch.]
[(1)
The price for redispatch services for annual planned transactions
shall be based on the cost of providing the service, which shall be allocated
among transmission service customers in proportion to each customer's share
of the transmission cost of service, as determined by the commission under §25.192
of this title (relating to Transmission Service Rates). For redispatch required
to accommodate an annual planned transaction, the electric utility providing
the redispatch service shall provide information documenting the costs incurred
to provide the service to the independent system operator. This information
shall be available to affected persons.]
[(2)
The cost of redispatch services for other transactions
(including planned transmission service of a duration of less than a year)
shall be borne by the transmission service customer for whose benefit the
redispatch is made. Electric utilities shall provide binding advance bids
for redispatch services for unplanned transactions. The participants in unplanned
transactions shall be promptly notified by the independent system operator
that their transactions may be or have been continued through redispatch;
shall be informed of the cost of the redispatch measures; and shall have the
opportunity to abandon or curtail their transactions to avoid additional redispatch
costs.]
[(3)
ERCOT utilities that are required to provide ancillary
services under Division 1 of this subchapter (relating to Transmission and
Distribution), shall include in their tariffs a standard methodology for calculating
redispatch costs.]
[(4)
To the extent that non-utility resources are redispatched
by an electric utility pursuant to this subsection, the compensation for such
services shall be consistent with this subsection.]
(d)
System reliability. Notwithstanding any other provisions
of this section,
a TSP may
[
(1)
In the event of any adverse condition or disturbance on
the
TSP's
[
(2)
The
TSP
[
(3)
If a
[
(4)
ERCOT
[
Commercial Terms for Transmission
Service
[
(a)
Billing and payment. Within a reasonable time after the
first day of each month,
transmission service providers (TSPs) shall
issue invoices for the prior month's transmission service to distribution
service providers (DSPs) and customers responsible for the export of power
from the Electric Reliability Council of Texas (ERCOT) region
[
(1)
An invoice for transmission service shall be paid
so that the TSP
[
(2)
Interest on any unpaid amount shall be calculated
by using the average of prime commercial paper rates in effect during the
period for which an amount is overdue and compounded monthly
[
(3)
In the event the
transmission service
customer
fails, for any reason other than a billing dispute as described in subparagraph
(A) of this paragraph, to make payment to the
TSP
[
(A)
Upon the occurrence of a default, the
TSP
[
(i)-(ii)
(No change.)
(B)
If the transmission service customer fails to meet the
requirements in subparagraph (A) of this paragraph, then the
TSP
[
(C)
Any dispute arising in connection with the termination
or proposed termination of service shall be referred to the alternative dispute
resolution process described in §25.203 of this title (relating to Alternative
Dispute Resolution
(ADR)
).
[(4)
Any person who knowingly makes use of
an ancillary service required by the independent system operator without the
agreement of the party providing that service shall pay to such service provider
an amount equal to three times the otherwise applicable charge. In no case
shall a service provider knowingly provide such an ancillary service without
prior arrangements with the customer, nor shall a service provider unilaterally
impose such an ancillary service on an unwilling purchaser.]
(b)
Indemnification and liability.
(1)
Neither a
transmission service
customer nor
TSP
[
(2)
Notwithstanding the provisions of paragraph (1) of this
subsection, a transmission service customer and
TSP
[
(c)
Creditworthiness for transmission service [
(1)
The
TSP
[
(2)
(No change.)
§25.203.Alternative Dispute Resolution (ADR).
(a)
Obligation to use alternative dispute resolution. Subject
to the right to seek direct commission review pursuant to subsection
(f)
[
(b)
Referral to senior representatives. Such disputes shall
be referred for resolution to a designated senior representative of each of
the parties to the dispute.
The senior dispute representative shall be
an individual who has authority to resolve the dispute. The senior dispute
[
(c)
Mediation or arbitration.
If the senior dispute representatives
[
(1)
refer the matter to arbitration, upon agreement of
all involved parties; or
[
(2)
upon the request of one party, engage in mediation
with the assistance of a neutral third party, mutually selected by all parties
concerned, who has training or experience in mediation.
[
[(3)
Only parties to the dispute may participate
in the arbitration. ]
(d)
Arbitration. If the parties choose to refer
the matter to arbitration, pursuant to subsection (c) of this section:
(1)
The commission shall maintain a commission-approved
list of qualified persons available to serve on arbitration panels who are
knowledgeable in electric utility matters, including electricity transmission
and bulk power issues. The commission shall also maintain a separate list
of qualified persons experienced in arbitration that may be available to chair
the arbitration panels.
(2)
A party shall initiate arbitration by
filing a letter with the commission requesting that arbitration be scheduled.
A copy of the letter shall be served upon the other party to the dispute at
the same time the letter is filed with the commission.
(3)
Only parties to the dispute may participate
in the arbitration.
(4)
[
(5)
[
(6)
[
[
The arbitrators may agree with the positions
of one or more of the parties, or may recommend a compromise position.
(7)
[
(8)
[
(A)
[
(B)
[
(e)
[
(f)
[
(1)
Use or application of the arbitration provisions in this
subsection does not affect the jurisdiction of the commission over any matters
arising under this section.
[(2)
Nothing in this section shall restrict
the right of a market participant to file a petition seeking direct relief
from the commission without first utilizing the alternative dispute resolution
process where an action by or the independent system operator might inhibit
the ability of an electric utility to provide continuous and adequate service
to its customers.]
(2)
[
[(j)
Applicability of ADR to the ISO. Complaints
against the ISO shall be subject to the ADR provisions and procedures established
in this section.]
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed
with the Office of the Secretary of State, on February 23, 2001.
TRD-200101138
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: April 8, 2001
For further information, please call: (512) 936-7308
16 TAC §§25.193, 25.194, 25.197, 25.201, 25.204
(Editor's note: The text of the following sections proposed for
repeal will not be published. The sections may be examined in the offices
of the Public Utility Commission of Texas or in the Texas Register office,
Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
These repeals are proposed under the Public Utility
Regulatory Act, Texas Utilities Code Annotated §14.002 (Vernon 1998,
Supplement 2001) (PURA), which provides the Public Utility Commission with
the authority to make and enforce rules reasonably required in the exercise
of its powers and jurisdiction. In addition, in proposing to revise the commission's
transmission rules consistent with the new ERCOT market design, the commission
relies on the following PURA provisions: §35.002, which specifies the
providers of generation that may compete for the business of selling power
at wholesale; §35.004, which relates to the provision of wholesale transmission
service; §35.005, which relates to the commission's authority to order
transmission service; §35.006, which requires the commission to adopt
rules relating to wholesale transmission service, rates, and access; §35.007,
which relates to the filing of a compliance tariff by a utility that owns
or operates a transmission facility; §35.008, which grants the commission
authority to order nonbinding alternative dispute resolution for parties to
a dispute concerning wholesale transmission service; §39.001(a)-(b),
which set out a legislative finding that a competitive retail electric market
is in the public interest; §39.151, which requires the commission to
certify independent organizations to ensure access to the transmission and
distribution systems for all buyers and sellers of electricity on nondiscriminatory
terms, ensure the reliability and adequacy of the regional electrical network,
ensure that information relating to a customer's choice of retail electric
provider is conveyed in a timely manner to the persons who need that information,
and ensure that electricity production and delivery are accurately accounted
for among the generators and wholesale buyers and sellers in the region; and §39.203(a),
which relates to a transmission and distribution utility's required provision
of transmission and distribution service.
Cross Reference to Statutes: PURA §§14.002, 35.002, 35.004-35.008,
39.001(a)-(b), 39.151, and 39.203(a).
§25.193.Procedures for Modifying Transmission Rates.
§25.194.Determining Peak Load and Transmission Adequacy.
§25.197.ERCOT Independent System Operator.
§25.201.Ancillary Services.
§25.204.Summary of Required Filings.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed
with the Office of the Secretary of State, on February 23, 2001.
TRD-200101137
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: April 8, 2001
For further information, please call: (512) 936-7308
2.
INDEPENDENT ORGANIZATIONS
16 TAC §25.361
This new rule is proposed under the Public Utility Regulatory
Act, Texas Utilities Code Annotated §14.002 (Vernon 1998, Supplement
2001) (PURA), which provides the Public Utility Commission with the authority
to make and enforce rules reasonably required in the exercise of its powers
and jurisdiction. In addition, in proposing to revise the commission's transmission
rules consistent with the new ERCOT market design, the commission relies on
the following PURA provisions: §35.002, which specifies the providers
of generation that may compete for the business of selling power at wholesale; §35.004,
which relates to the provision of wholesale transmission service; §35.005,
which relates to the commission's authority to order transmission service; §35.006,
which requires the commission to adopt rules relating to wholesale transmission
service, rates, and access; §35.007, which relates to the filing of a
compliance tariff by a utility that owns or operates a transmission facility; §35.008,
which grants the commission authority to order nonbinding alternative dispute
resolution for parties to a dispute concerning wholesale transmission service; §39.001(a)-(b),
which set out a legislative finding that a competitive retail electric market
is in the public interest; §39.151, which requires the commission to
certify independent organizations to ensure access to the transmission and
distribution systems for all buyers and sellers of electricity on nondiscriminatory
terms, ensure the reliability and adequacy of the regional electrical network,
ensure that information relating to a customer's choice of retail electric
provider is conveyed in a timely manner to the persons who need that information,
and ensure that electricity production and delivery are accurately accounted
for among the generators and wholesale buyers and sellers in the region; and §39.203(a),
which relates to a transmission and distribution utility's required provision
of transmission and distribution service.
Cross Reference to Statutes: PURA §§14.002, 35.002, 35.004-35.008,
39.001(a)-(b), 39.151, and 39.203(a).
§25.361.Electric Reliability Council of Texas (ERCOT).
(a)
Applicability. This section applies to the Electric Reliability
Council of Texas (ERCOT). It also applies to transmission service providers
(TSPs) and transmission service customers, as defined in §25.5 (relating
to Definitions), with respect to interactions with ERCOT. TSPs include river
authorities and other electric utilities, municipally owned utilities, and
electric cooperatives. Transmission service customers include municipally-owned
utilities, electric cooperatives, power generation companies, retail electric
providers, federal power marketing agencies, exempt wholesale generators,
qualifying facilities, power marketers, or other persons whom the commission
has determined to be eligible transmission service customers.
(b)
Purpose. ERCOT shall perform the functions of an independent
organization under the Public Utility Regulatory Act (PURA) §39.151 to
ensure access to the transmission and distribution systems for all buyers
and sellers of electricity on nondiscriminatory terms; ensure the reliability
and adequacy of the regional electrical network; ensure that information relating
to a customer's choice of retail electric provider is conveyed in a timely
manner to the persons who need that information; and ensure that electricity
production and delivery are accurately accounted for among the generators
and wholesale buyers and sellers in the region. In addition, ERCOT may, on
the introduction of customer choice in the ERCOT power region, acquire generation-related
ancillary services on a nondiscriminatory basis on behalf of entities selling
electricity at retail in accordance with PURA §35.004(e).
(c)
Functions. ERCOT shall operate an integrated electronic
transmission information network and carry out the other functions prescribed
by this section. ERCOT shall:
(1)
administer, on a daily basis, the ERCOT transmission tariffs,
including determining whether a person is eligible for transmission service;
(2)
serve as the single point of contact for the initiation
of transmission transactions;
(3)
maintain the reliability and security of the ERCOT electrical
network, including the instantaneous balancing of ERCOT generation and load
and monitoring the adequacy of resources to meet demand;
(4)
receive and approve scheduling of ERCOT generation and
transmission transactions;
(5)
direct the curtailment and redispatch of ERCOT generation
and transmission transactions on a non-discriminatory basis, consistent with
ERCOT protocols;
(6)
accept and supervise the processing of all requests for
interconnection to the ERCOT transmission system from owners of new generating
facilities;
(7)
coordinate and schedule planned transmission facility outages;
(8)
perform any system security study, with the assistance
of affected TSPs;
(9)
plan the ERCOT transmission system, in accordance with
subsection (e) of this section;
(10)
administer the alternative dispute resolution procedures
in §25.203 of this title (relating to Alternative Dispute Resolution
(ADR)), except for those instances of alternative dispute resolution provided
in the ERCOT protocols;
(11)
administer registration procedures for market participants;
(12)
administer the renewable energy program;
(13)
monitor generation planned outages;
(14)
submit an annual report to the commission identifying
existing and potential transmission and distribution constraints and system
needs within ERCOT, alternatives for meeting system needs, and recommendations
for meeting system needs, pursuant to PURA §39.155 (relating to Commission
Assessment of Market Power); and
(15)
perform any additional duties required under the commission-approved
ERCOT protocols.
(d)
Commercial functions. ERCOT shall not dispatch generation
facilities, but shall have full authority to direct the redispatch of generation
facilities under the circumstances specified in Subchapter I, Division 1 of
this chapter (relating to Transmission and Distribution). ERCOT shall determine
and purchase the amount of ancillary services required to maintain and ensure
the reliability of the network. All commercial functions required to ensure
reliability and adequacy of the transmission network are to be conducted in
accordance with the ERCOT protocols.
(e)
Planning. ERCOT shall conduct transmission system planning
and exercise comprehensive authority over the planning of bulk transmission
projects that affect the transfer capability of the ERCOT transmission system.
ERCOT shall supervise and coordinate the other planning activities of TSPs.
(1)
ERCOT shall evaluate and make a recommendation to the commission
as to the need for any transmission facility over which it has comprehensive
transmission planning authority.
(2)
A TSP shall coordinate its transmission planning efforts
with those of other TSPs, insofar as its transmission plans affect other TSPs.
(3)
ERCOT shall submit to the commission any subsequent revisions
or additions to the planning guidelines and procedures prior to adoption.
ERCOT may seek input from the commission as to the content and implementation
of its guidelines and procedures as it deems necessary.
(f)
Information and coordination. Providers of transmission
and ancillary services and customers of such service providers shall provide
such information as may be required by ERCOT to carry out the functions prescribed
by this section and as provided in the ERCOT protocols. ERCOT shall have a
fiduciary responsibility to maintain the confidentiality of competitively
sensitive information entrusted to it. ERCOT shall also disseminate information
relating to market prices and the availability of services, in accordance
with the ERCOT protocols. Providers of transmission and ancillary services
shall also maintain the confidentiality of competitively sensitive information
entrusted to them by ERCOT or a transmission or ancillary services customer.
(g)
Interconnection standards. In performing its functions
related to the reliability and security of the ERCOT electrical network, ERCOT
may prescribe reliability and security standards for the interconnection of
generating facilities that use the ERCOT transmission network. Such standards
shall not adversely affect or impede manufacturing or other internal process
operations associated with such generating facilities, except to the minimum
extent necessary to assure reliability of the ERCOT transmission network.
(h)
ERCOT administrative fee. Transmission service customers
shall incur an administrative fee for transmission service, payable to ERCOT.
Changes in the fee or application of new fees are subject to commission approval.
(i)
Reports. Each TSP and transmission service customer in
the geographic region of ERCOT shall on an annual basis provide historical
information concerning peak loads and resources connected to the TSP's system.
ERCOT shall periodically file with the commission reports concerning its governance,
operations and budget, the reliability of the ERCOT electrical network, and
its transmission planning efforts, including a list of any transmission projects
that it recommends.
(j)
Anti-trust laws. The existence of ERCOT is not intended
to affect the application of any state or federal anti-trust laws.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed
with the Office of the Secretary of State, on February 23, 2001.
TRD-200101136
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: April 8, 2001
For further information, please call: (512) 936-7308
Chapter 401.
ADMINISTRATION OF STATE LOTTERY ACT
Subchapter E. RETAILER RULES
The Texas Lottery Commission proposes amendments to 16 TAC §§401.351,
401.352, 401.355, 401.360-401.364, and 401.368, repeal of §§401.353,
401.354, 401.356, 401.358, 401.359, 401.365, 401.367, and 401.369, and adds
new rule §401.353 regarding requirements for lottery retailers. The proposed
rulemaking is on rules contained within Subchapter E. Specifically, the proposed
amendments make the rules consistent with existing law and clarify current
agency practices and procedures relating to how the proceeds from ticket sales
are treated; the settlement procedures used in connection with receiving monies
from ticket sales from retailers; restricted sales; payment of prizes; required
sales of lottery tickets; retailer's financial responsibility for lottery
tickets received, winning lottery tickets paid, and for lottery-related property;
retailer's records; training; and, instant ticket vending machines. The proposed
repeals are to eliminate language that is redundant to language in the State
Lottery Act or other Commission rules, inconsistent with corresponding language
in the State Lottery Act, inconsistent with current agency practice, or because
provisions of the rule are being revised so significantly that it is more
efficient to repeal the rule, §401.353, and propose a new rule, §401.353.
The new rule, §401.353, is to replace the existing rule proposed to repeal.
Government Code §2001.039, and the General Appropriations Act, Article
IX, §9-10.13, 76th Legislature (1999), requires each state agency to
review and consider for readoption each rule adopted by that agency pursuant
to the Government Code, Chapter 2001 (Administrative Procedures Act). 16 TAC
Chapter 401 has been reviewed in its entirety and the Commission determined
that reasons for adopting certain sections continue to exist. The certain
sections that have been readopted pursuant to Commission Order Number 00-0004,
dated January 28, 2000, are set out in Exhibit "A" to the Order. The notice
of the proposed rule review was published in the November 12, 1999, issue
of the
Texas Register
(24 TexReg 10149). No
comments were received regarding the agency's rule review of Chapter 401.
The proposal of this rulemaking is consistent with and the result of the agency's
rule review.
Bart Sanchez, Financial Administration Director, has determined for each
year of the first five years the sections are in effect there will be no foreseeable
additional fiscal implications for state or local government as a result of
enforcing or administering these rules. There is no anticipated impact on
small businesses, micro businesses or local or state employment as a result
of implementing these sections.
Gary Grief, Lottery Operations Director, has determined that each of the
first five years the sections as proposed are in effect, the public benefit
anticipated as a result of the proposed amendments, repeals, and new rule
will be the elimination of redundant or obsolete language and updating of
rules to current agency practice.
Written comments on the proposed amendments, repeals, or new rule may be
submitted to Kimberly L. Kiplin, General Counsel, Texas Lottery Commission,
P.O. Box 16630, Austin, Texas 78761-6630.
Part 2.
PUBLIC UTILITY COMMISSION OF TEXAS
(11)
] Base rate--Generally, a rate
designed to recover the costs of electricity other than costs recovered through
a fuel factor, power cost recovery factor, or surcharge.
(12)
] Commission--The Public Utility
Commission of Texas.
(13)
] Control area--An electric
power system or combination of electric power systems to which a common automatic
generation control scheme is applied in order to:
(14)
] Corporation--A domestic or
foreign corporation, joint-stock company, or association, and each lessee,
assignee, trustee, receiver, or other successor in interest of the corporation,
company, or association, that has any of the powers or privileges of a corporation
not possessed by an individual or partnership. The term does not include a
municipal corporation or electric cooperative, except as expressly provided
by the Public Utility Regulatory Act.
(15)
] Customer choice--The freedom
of a retail customer to purchase electric services, either individually or
through voluntary aggregation with other retail customers, from the provider
or providers of the customer's choice and to choose among various fuel types,
energy efficiency programs, and renewable power suppliers.
(16)
] Customer class--A group of
customers with similar electric usage service characteristics (e.g., residential,
commercial, industrial, sales for resale) taking service under one or more
rate schedules. Qualified businesses as defined by the Texas Enterprise Zone
Act, Texas Government Code, Title 10, Chapter 2303 may be considered to be
a separate customer class of electric utilities.
(17)
] Demand-side management--Activities
that affect the magnitude and/or timing of customer electricity usage.
(18)
] Demand-side resource or demand-side
management resource--Activities that result in reductions in electric generation,
transmission, or distribution capacity needs or reductions in energy usage
or both.
(19)
] Distribution line--A power
line operated below 60,000 volts, when measured phase-to-phase.
(20)
] Distributed resource--A generation,
energy storage, or targeted demand-side resource, generally between one kilowatt
and ten megawatts, located at a customer's site or near a load center, which
may be connected at the distribution voltage level (60,000 volts and below),
that provides advantages to the system, such as deferring the need for upgrading
local distribution facilities.
(25)
] Eligible transmission service
customer--A [
transmission service provider (for all uses of its transmission
system) or any electric utility,
] municipally-owned utility, electric
cooperative, power generation company, retail electric provider, federal power
marketing agency, exempt wholesale generator, qualifying facility, power marketer,
or other person whom the commission has determined to be an eligible transmission
service customer.
For the purpose of billing transmission service, an
eligible transmission service customer includes an electric utility providing
distribution service.
Any natural person, partnership, municipal corporation, cooperative
corporation, corporation, association, governmental subdivision, or public
or private organization of any character other than an agency.
]
(45)
] Pleading--A written document
submitted by a party, or a person seeking to participate in a proceeding,
setting forth allegations of fact, claims, requests for relief, legal argument,
and/or other matters relating to a proceeding.
(46)
] Power cost recovery factor--A
charge or credit that reflects an increase or decrease in purchased power
costs not in base rates.
(47)
] Power generation company--A
person that:
(48)
] Power marketer--A person
who becomes an owner of electric energy in this state for the purpose of selling
the electric energy at wholesale; does not own generation, transmission, or
distribution facilities in this state; does not have a certificated service
area; and who is in compliance with the registration requirements of §25.105
of this title (relating to Registration and Reporting by Power Marketers,
Exempt Wholesale Generators and Qualifying Facilities).
(49)
] Power region--A contiguous
geographical area which is a distinct region of the North American Electric
Reliability Council.
(51)
] Premises--A tract of land
or real estate including buildings and other appurtenances thereon.
(52)
] Proceeding--A hearing, investigation,
inquiry, or other procedure for finding facts or making a decision. The term
includes a denial of relief or dismissal of a complaint. It may be rulemaking
or nonrulemaking; rate setting or non-rate setting.
(53)
] Public utility or utility--means
an electric utility as that term is defined in this section, or a public utility
or utility as those terms are defined in the Public Utility Regulatory Act §51.002.
(54)
] Public Utility Regulatory
Act (PURA)--The enabling statute for the Public Utility Commission of Texas,
located in the Texas Utilities Code Annotated, §§11.001
et.
seq
[
-64.158, (Vernon 1999)
].
(55)
] Purchased power market value--The
value of demand and energy bought and sold in a bona fide third-party transaction
or transactions on the open market and determined by using the weighted average
costs of the highest three offers from the market for purchase of the demand
and energy available under the existing purchased power contracts.
(56)
] Qualifying cogenerator--The
meaning as assigned this term by 16 U.S.C. §796(18)(C). A qualifying
cogenerator that provides electricity to the purchaser of the cogenerator's
thermal output is not for that reason considered to be a retail electric provider
or a power generation company.
(57)
] Qualifying facility--A qualifying
cogenerator or qualifying small power producer.
(58)
] Qualifying small power producer--The
meaning as assigned this term by 16 U.S.C. §796(17)(D).
(59)
] Rate--A compensation, tariff,
charge, fare, toll, rental, or classification that is directly or indirectly
demanded, observed, charged, or collected by an electric utility for a service,
product, or commodity described in the definition of electric utility in this
section and a rule, practice, or contract affecting the compensation, tariff,
charge, fare, toll, rental, or classification that must be approved by a regulatory
authority.
(60)
] Rate class--A group of customers
taking electric service under the same rate schedule.
(61)
] Rate year--The 12-month period
beginning with the first date that rates become effective. The first date
that rates become effective may include, but is not limited to, the effective
date for bonded rates or the effective date for interim or temporary rates.
(62)
] Ratemaking proceeding--A
proceeding in which a rate may be changed.
(63)
] Regulatory authority--In
accordance with the context where it is found, either the commission or the
governing body of a municipality.
(64)
] Renewable energy technology--Any
technology that exclusively relies on an energy source that is naturally regenerated
over a short time and derived directly from the sun, indirectly from the sun
or from moving water or other natural movements and mechanisms of the environment.
Renewable energy technologies include those that rely on energy derived directly
from the sun, on wind, geothermal, hydroelectric, wave, or tidal energy, or
on biomass or biomass-based waste products, including landfill gas. A renewable
energy technology does not rely on energy resources derived from fossil fuels,
waste products from fossil fuels, or waste products from inorganic sources.
(65)
] Renewable resource--A resource
that relies on renewable energy technology.
(66)
] Retail customer--The separately
metered end-use customer who purchases and ultimately consumes electricity.
(67)
] Retail electric provider--A
person that sells electric energy to retail customers in this state. A retail
electric provider may not own or operate generation assets.
(68)
] Retail stranded costs--That
part of net stranded cost associated with the provision of retail service.
(69)
] Rule--A statement of general
applicability that implements, interprets, or prescribes law or policy, or
describes the procedure or practice requirements of the commission. The term
includes the amendment or repeal of a prior rule, but does not include statements
concerning only the internal management or organization of the commission
and not affecting private rights or procedures.
(70)
] Rulemaking proceeding--A
proceeding conducted pursuant to the Administrative Procedure Act, Texas Government
Code,
Chapter 2001, Subchapter B,
[
§§2001.021-2001.037
] to adopt, amend, or repeal a commission rule.
(71)
] Separately metered--Metered
by an individual meter that is used to measure electric energy consumption
by a retail customer and for which the customer is directly billed by a utility,
retail electric provider, electric cooperative, or municipally owned utility.
(72)
] Service--Has its broadest
and most inclusive meaning. The term includes any act performed, anything
supplied, and any facilities used or supplied by an electric utility in the
performance of its duties under the Public Utility Regulatory Act to its patrons,
employees, other public utilities or electric utilities, an electric cooperative,
and the public. The term also includes the interchange of facilities between
two or more public utilities or electric utilities.
(73)
] Spanish-speaking person--A
person who speaks any dialect of the Spanish language exclusively or as their
primary language.
(74)
] Stranded cost--The positive
excess of the net book value of generation assets over the market value of
the assets, taking into account all of the electric utility's generation assets,
any above-market purchased power costs, and any deferred debit related to
a utility's discontinuance of the application of Statement of Financial Accounting
Standards Number 71 ("Accounting for the Effect of Certain Types of Regulation")
for generation-related assets if required by the provisions of the Public
Utility Regulatory Act, Chapter 39. For purposes of §39.262, book value
shall be established as of December 31, 2001, or the date a market value is
established through a market valuation method under §39.262(h), whichever
is earlier, and shall include stranded costs incurred under §39.263.
(75)
] Submetering--Metering of
electricity consumption on the customer side of the point at which the electric
utility meters electricity consumption for billing purposes.
(76)
] Supply-side resource--A resource,
including a storage device, that provides electricity from fuels or renewable
resources.
(77)
] Tariff--The schedule of a
utility, municipally-owned utility, or electric cooperative containing all
rates and charges stated separately by type of service, the rules and regulations
of the utility, and any contracts that affect rates, charges, terms or conditions
of service.
(78)
] Tenant--A person who is entitled
to occupy a dwelling unit to the exclusion of others and who is obligated
to pay for the occupancy under a written or oral rental agreement.
(79)
] Test year--The most recent
12 months for which operating data for an electric utility, electric cooperative,
or municipally-owned utility are available and shall commence with a calendar
quarter or a fiscal year quarter.
(80)
] Transmission and distribution
utility--A person or river authority that owns, or operates for compensation
in this state equipment or facilities to transmit or distribute electricity,
except for facilities necessary to interconnect a generation facility with
the transmission or distribution network, a facility not dedicated to public
use, or a facility otherwise excluded from the definition of "electric utility"
under this section, in a qualifying power region certified under the Public
Utility Regulatory Act (PURA) §39.152, but does not include a municipally
owned utility or an electric cooperative.
(83)
] Transmission line--A power
line that is operated at 60,000 volts or above, when measured phase-to-phase.
(85)
] Transmission service--Service
that allows a transmission service customer to use the transmission and distribution
facilities of electric utilities, electric cooperatives and municipally owned
utilities to efficiently and economically utilize generation resources to
reliably serve its loads and to deliver power to another transmission
service
customer. Includes construction or enlargement of facilities,
transmission over distribution facilities, control area services, scheduling
resources, regulation services, reactive power support, voltage control, provision
of operating reserves, and any other associated electrical service the commission
determines appropriate, except that, on and after the implementation of customer
choice, control area services, scheduling resources, regulation services,
provision of operating reserves, and reactive power support, voltage control
and other services provided by generation resources are not "transmission
service".
(86)
] Transmission service customer--
An eligible
[
A
] transmission
service
customer
that is taking
[
receiving
] transmission service
under
Subchapter I, Division 1 of this chapter (relating to Transmission and Distribution).
For the purpose of billing for transmission service, a transmission service
customer includes an electric utility providing distribution service.
[
Where consistent with the context, "transmission service customer" includes
an eligible transmission service customer seeking transmission service.
]
(87)
] Transmission service provider
(TSP)
--An electric utility, municipally-owned utility, or electric cooperative
that owns or operates facilities used for the transmission of electricity
and provides transmission service.
(88)
] Transmission system--The
transmission facilities at or above 60 kilovolts owned, controlled, operated,
or supported by a transmission
service
provider or transmission
service
customer that are used to provide transmission service.
Subchapter I. TRANSMISSION AND DISTRIBUTION
wholesale
] transmission access
[
and related ancillary services,
] in order to:
increase
] competition
in the sale of electric energy [
at wholesale
] in Texas,
(b)
] Nature of transmission service.
Transmission service allows
for power delivery
[
transmission
service customers to use the transmission systems to deliver power
]
from generation resources to serve [
their
] loads, inside and outside
of the geographic region
of
ERCOT
[
the Electric Reliability
Council of Texas (ERCOT)
]. Service provided pursuant to Division 1 of
this subchapter permits
municipally-owned utilities, electric cooperatives,
power marketers, power generation companies, qualifying scheduling entities,
retail electric providers (REPs), qualifying facilities, and distribution
service providers (DSPs)
[
a transmission service customer
]
to use the transmission systems of [
all of
] the
TSPs
[
transmission service providers
] in ERCOT.
Transmission service
shall be provided pursuant to Division 1 of this subchapter and commission-approved
ERCOT protocols. Transmission service under Division 1 of this subchapter
includes the provision of transmission service to an entity that is scheduling
the export or import of power from the ERCOT region across a high voltage
direct current interconnection.
(e)
] Obligation to provide transmission
service. Each
TSP
[
electric utility
] in ERCOT [
that owns transmission facilities
] shall provide [
wholesale
]
transmission service [
to other electric utilities, power marketers, exempt
wholesale generators, qualifying facilities and other eligible transmission
service customers,
] in accordance with the provisions of Division 1
of this subchapter. [
Each electric utility that owns transmission facilities
shall file a tariff for transmission service and shall take transmission service
for all of its uses of its transmission facilities in accordance with the
terms of its tariff for transmission service.
]
Each electric utility that
owns transmission facilities shall provide transmission service to other electric
utilities, power marketers, exempt wholesale generators, qualifying facilities
and other eligible transmission service customers on the same terms and conditions
that it provides transmission service to itself. Where an electric utility
] has contracted for another person to operate its transmission facilities,
the person assigned to operate the facilities shall carry out the operating
responsibilities of the
TSP
[
electric utility
] under
Division 1 of this subchapter.
an electric utility
], even
if the
TSP's
[
electric utility's
] interconnection with
the transmission service customer is through distribution, rather than transmission
facilities.
transmission service provider
] that owns facilities for the delivery of electricity to
a
[
an eligible
] transmission service customer purchasing electricity
at wholesale using facilities rated at less than 60 kilovolts shall provide
the customer access to its facilities on a non-discriminatory basis
[
an eligible transmission service customer access to the transmission
service provider's delivery points on the same pricing, terms and conditions
used by the transmission service provider in serving similar primary metered
distribution-level customers
].
Beginning September
1, 1999 a transmission service provider shall also
] provide access
to its facilities
at the distribution level to another
TSP
[
electric utility
], in order to transmit power to a retail customer
in an area in which the other
TSP
[
electric utility
]
has the right to provide retail electric service. Such service shall be provided
on a non- discriminatory basis
[
under the same pricing and other
terms and conditions available to the transmission service provider in serving
similar customers
].
(4)
] A
TSP
[
transmission
service provider
] shall interconnect its facilities with new generating
sources and construct facilities needed for such an interconnection, in accordance
with Division 1 of this subchapter.
A TSP shall use all reasonable efforts
to communicate promptly with a power generation company to resolve any questions
regarding the requests for service in a non-discriminatory manner. If a TSP
or a power generation company is required to complete activities or to negotiate
agreements as a condition of service, each party shall use due diligence to
complete these actions within a reasonable time.
(a)
] Charges for transmission service
delivered within ERCOT
.
DSPs shall incur transmission service charges
pursuant to the tariffs of the TSP.
[
Transmission service customers
shall incur access charges, loss compensation charges, and an independent
system operator (ISO) fee for all planned transmission service. Transmission
service customers shall incur loss compensation charges and an ISO fee for
unplanned transmission service. Access charges shall be determined in transmission
ratemaking proceedings conducted periodically, at such intervals as the commission
determines are appropriate.
]
The costs included in the access
charge will be the annual cost of transmission service for each transmission
service provider in the Electric Reliability Council of Texas (ERCOT). A transmission
service customer taking planned transmission service will pay a share of these
costs, based on its share of the total load in ERCOT.
]
The commission
may adjust the access charges under this section to account for any transmission
revenues that an electric utility receives under an existing transmission
contract.
]
(b)
] Transmission cost of service.
The [
annual
] transmission cost of service for each
TSP
[
transmission service provider
] shall be based on the [
annual
] expenses in Federal Energy Regulatory Commission (FERC) expense accounts
560-573 (or accounts with similar contents) plus the depreciation, federal
income tax, and other associated taxes, and the commission-allowed rate of
return based on FERC plant accounts 350-359 (or accounts with similar contents),
less accumulated depreciation and accumulated deferred federal income taxes.
the Southwest Power
Pool
] that are owned by a
TSP
[
transmission service
provider
] in ERCOT; and
(3)
] For municipal utilities, river
authorities, and electric cooperatives, the commission may permit the use
of
the cash flow method or other
reasonable alternative methods
of determining the annual
transmission revenue requirement, including
the return element of the revenue requirement,
[
cost of transmission
service, including the cash flow method,
] consistent with the rate actions
of the rate-setting authority for a municipal utility[
, and an alternative
method for determining the utility's return, as permitted in paragraph (4)
of this subsection
].
(4)
] For municipal utilities, river
authorities, and electric cooperatives, the return may be determined based
on the
TSP's
[
electric utility's
] actual debt service
and a reasonable coverage ratio. In determining a reasonable coverage ratio,
the commission will consider the coverage ratios required in the
TSP's
[
electric utility's
] bond indentures or ordinances and the
most recent rate action of the rate-setting authority for the
TSP
[
electric utility
].
(5)
] The commission may adopt rate-filing
requirements that provide additional details concerning the costs that may
be included in the [
annual
] transmission
costs
[
cost
] and how such costs should be reported in a proceeding to establish
transmission rates.
(c)
] Billing units.
No later
than December 1 of each year, ERCOT shall determine and file with the commission
the average 4CP demand for each DSP for the current year, which shall be used
to bill transmission service for the next year. The ERCOT average 4CP demand
shall be the sum of the coincident peak of all of the ERCOT DSPs for the four
intervals coincident with ERCOT system peak for the months of June, July,
August, and September, divided by four. As used in this section, a DSP's average
4CP demand is determined from the total demand, coincident with the ERCOT
4CP, of all customers connected to a DSP. The measurement of the coincident
peak shall be in accordance with commission-approved ERCOT protocols.
[
As used in this section, a transmission service customer's system demand
is the average of the demand of the transmission service customer's retail
and wholesale customers for hours that are coincident with the most recent
ERCOT system coincident peak demand. In determining a transmission service
customer's demand and ERCOT system coincident peak demand, the actual demand
on electric utility systems shall be considered, and the ERCOT system coincident
peak demand shall be an average of the highest aggregate demand in each of
the months of June, July, August, and September of the relevant period. Actual
electric utility demand shall be calculated based on the electric utility's
net hourly generation, plus wholesale purchases, minus wholesale sales. Peak
demand may be adjusted for known and measurable changes to wholesale customer
loads and resources, when such changes can be identified and quantified with
reasonable certainty.
]
(g)
] Transmission rates for exports
from ERCOT.
Transmission service charges and the ERCOT administrative
fee
[
Access charges, ISO charges, and loss compensation
]
for exports of power from ERCOT will be assessed to transmission service customers
for
transmission service
[
that portion of transmission that
is
] within the boundaries of
the
ERCOT
region
,
in accordance with this section
and the ERCOT protocols
.
For the purposes of facilitating these transactions,
the annual access charge shall be prorated on a monthly, weekly, daily and
hourly basis.
]
on an unplanned basis
] will
be assessed
a transmission
[
an access
] charge based
on the duration of the transaction, and will be charged only for the transmission
service actually used. [
Transmission service customers exporting power
from ERCOT on a planned basis will be assessed an access charge based on duration
of the service requested.
]
access fee
] will be one- fourth the
TSP's
annual rate, and
the monthly off-peak
transmission rate
[
access fee
]
will be one-twelfth
its
[
the
] annual rate. The peak
period used to determine the applicable transmission rate for such transactions
shall be the months of June, July, August, and September.
ERCOT
] shall execute interconnection agreements with the
transmission service providers
(TSP)
to which it is physically
connected. The
commission- approved
[
commission will develop
a
] standard agreement for the interconnection of new generating facilities[
, and when this standard agreement is approved, it
] shall be used by
transmission service customers and
TSPs
[
transmission service
providers
].
A standard agreement may be modified with commission
approval.
[
The transmission service customer shall either:
]
transmission service provider
] will plan, construct,
operate and maintain its transmission system in accordance with good utility
practice in order to provide transmission service customers with [
planned
] transmission service over its transmission system in accordance with
Division 1 of this subchapter (relating to Transmission and Distribution).
The
TSP
[
transmission service provider
] shall [
include transmission service customers' load in its transmission system planning
and shall
], consistent with good utility practice, endeavor to construct
and place into service sufficient transmission capacity to
ensure adequacy
and reliability of the network to deliver power to transmission service customer
loads
[
deliver power from the resources nominated by a transmission
service customer as annual planned resources to serve the customer's load
on the same basis as the transmission service provider's delivery of its own
nominated generating and purchased resources to its native load customers
]. The
TSP
[
transmission service provider
] will
plan, construct, operate and maintain facilities that are needed to relieve
transmission constraints, as recommended by
ERCOT
[
the ISO
], in accordance with [
this
] Division 1 of this subchapter
(relating to
Open-Access Comparable Transmission Service for Electric
Utilities in the Electric Reliability Council of Texas
[
Transmission
and Distribution
]). The construction of facilities requiring commission
issuance of a certificate of convenience and necessity is subject to such
commission approval.
(e)
] Construction of new facilities.
If additional transmission facilities or interconnections between
TSPs
[
electric utilities
] are needed to provide transmission
service pursuant to a request for such service, the
TSPs
[
transmission service providers
] where the constraint exists shall
construct or
acquire the facilities necessary to permit the transmission
service to be provided, unless
ERCOT identifies an alternative means
of providing the transmission service that is less costly, operationally sound,
and relieves the transmission constraint at least as effectively as would
additional transmission facilities.
[
the independent system operator
determines that redispatch or other more economical means of making transmission
capacity available will permit the requested transmission service to be provided.
If additional facilities are needed to provide ancillary services to a customer
requesting such service, the ancillary service provider shall acquire the
facilities necessary to permit the ancillary service to be provided.
]
(2)
] When an eligible transmission
service customer requests transmission service for a new generating source
that is planned to be interconnected with a
TSP's
[
transmission
service provider's
] transmission network, the transmission service customer
shall be responsible for the cost of installing step-up transformers to transform
the output of the generator to a transmission voltage level and a protective
device at the point of interconnection. The
TSP
[
transmission
service provider
] shall be responsible for the cost of installing any
other interconnection facilities that are designed to operate at a transmission
voltage level and any other transmission system upgrades that may be necessary
to accommodate the requested transmission service.
transmission service provider
] may require the transmission service customer to pay a reasonable
deposit or provide another means of security, to cover the costs of planning,
licensing, and constructing any new transmission facilities that will be required
in order to provide the requested service.
transmission service provider
] shall return the deposit
or security to the transmission service customer. If the new generating source
is not completed and new transmission facilities are not required, the
TSP
[
transmission service provider
] may retain as much of
the deposit or security as is required to cover the costs it incurred in planning,
licensing, and construction activities related to the planned new transmission
facilities. Any repayment of a cash deposit shall include interest at a commercially
reasonable rate.
(3)
] An eligible transmission service
customer that is requesting transmission [
or ancillary
] service
may be required to make a contribution in aid of construction to cover all
or a part of the cost of acquiring additional facilities, if the acquisition
of the additional facilities would impair the tax-exempt status of obligations
issued by the provider of transmission [
or ancillary
] services.
(f)
] Curtailment of service. In
an emergency situation, as determined by
ERCOT
[
the independent
system operator
] and at its direction,
TSPs
[
control-area
utilities
] may interrupt transmission service
on a non-discriminatory
basis
, if necessary, to preserve the stability of the transmission network
and service to customers. Such curtailments shall be carried out in accordance
with §25.200 of this title (relating to Load Shedding, Curtailments,
and Redispatch)
and in accordance with ERCOT protocols
.
Cost separation. Each
electric utility that is subject to the requirements in §25.221 of this
title (relating to Electric Cost Separation) shall separate its costs and
rates in accordance with the provisions of that section. Other electric utilities
in the Electric Reliability Council of Texas shall separate their costs and
rates, based on the costs associated with the utility's generation, transmission,
and distribution functions. Unless otherwise directed by the commission, the
cost and rate separation requirements prescribed in this section shall not
require the statement of unbundled rates on retail customer bills.
]
electric
utility
] subject to the rules in Division 1 of this subchapter (relating
to
Open-Access Comparable Transmission Service for Electric Utilities
in the Electric Reliability Council of Texas
[
Transmission and
Distribution
]) that
is not otherwise required by the commission
to unbundle its generation and transmission activities,
[
operates
a control area
] shall functionally separate the operation of its transmission
facilities and the operation of its wholesale power purchase and sale activities
to the extent necessary to achieve the purposes of this section
.
Electric utility personnel
] shall be physically separated to the maximum extent practicable and
necessary to accomplish the purposes of this section. Each
TSP
[
electric utility
] subject to this section shall
have on file
[
make a filing
] with the commission
a filing
showing how it will implement the requirements of this section, including
written procedures governing the exchange of information and physical separation
of personnel among its functionally separated organizational units. This filing
shall be amended if the requirements of this section are amended or the
TSP
[
electric utility
] changes its organization or procedures
relating to the requirements of this section.
Electric utilities
] may request
limitations on the requirement to separate their personnel, based on a showing
that complete physical separation would impair the reliability of electric
service. The
TSP
[
electric utility
] bears the burden
of demonstrating that the separation of personnel requirements contained in
this rule would impair system reliability.
In performing its obligations under Division
1 of this subchapter, a transmission or ancillary service provider shall apply
the provisions of this section in a non- discriminatory manner to all users,
including itself. In addition, any electric utility that operates a control
area
] shall comply with the following standards:
an electric
utility that
] are engaged in wholesale merchant functions (that is,
the purchase or sale of electric energy at wholesale), other than purchases
required under the Public Utility Regulatory Policies Act, shall not:
electric utility's
] system control center and other facilities, beyond
the access that is available to other market participants;
electric utility's
] transmission system that is not
available to users of the electronic information network established in accordance
with Division 1 of this subchapter; or
electric
utility's
] transmission system and offerings of ancillary services,
including calculations of available transmission capacity and information
concerning curtailments, through means or sources other than the electronic
information network operated by
the Electric Reliability Council of Texas
(ERCOT)
[
the independent system operator
].
an electric utility
] engaged in transmission system
operations must function independently of employees engaged in wholesale merchant
functions and of employees of any affiliate of the
TSP
[
electric
utility
]. Employees engaged in transmission system operations may disclose
information to employees of the
TSP not
[
electric utility
] engaged in
transmission system operations or of an affiliate
[
merchant functions
] only through the electronic information
network, if the information relates to the
TSP's
[
electric
utility's
] transmission system or offerings of ancillary services, including
calculations of available transmission capacity and information concerning
curtailments.
Employees engaged in transmission system operations may
not disclose to employees of the TSP not engaged in transmission service operations
or of any affiliate any information that is not publicly available concerning
activities of any competitors of the TSP or any of its affiliates including
requests for interconnection by a transmission service customer or requests
by ERCOT for comments on the scope of a system security screening study.
the independent system operator
] on a monthly
basis and shall be made available, on request, to any market participant.
an electric utility
] discloses or obtains information in a manner that is inconsistent
with the requirements in this subsection, the
TSP
[
electric
utility
] shall post a notice and details of the disclosure on the information
network.
an electric utility
] engaged in transmission operations shall apply the rules in Division
1 of this subchapter and any tariffs relating to transmission [
and ancillary
] service in a fair and impartial manner.
Communications with eligible customers. A transmission or ancillary
service provider shall use all reasonable efforts to communicate promptly
with all eligible customers to resolve any questions regarding their requests
for service in a non-discriminatory manner.
]
in serving
its native load or in making
] sales of energy to a third party, it shall
apply for transmission service pursuant to this section
and the commission-approved
ERCOT protocols
. [
Transmission service customers and transmission
service providers shall provide the information that is required under this
section to the independent system operator.
]
transmission service provider
] will provide transmission service to any [
eligible
] transmission
service customer
as that term is defined in §25.5 of this title
(relating to Definitions)
, provided that:
eligible
] transmission service customer
has completed an application for service
with ERCOT
[
under
subsection (c), (d), or (e) of this section
];
eligible
] transmission service customer
and the
TSP
[
transmission service provider
] have completed
the technical arrangements set forth in subsection
(e)
[
(g)
] of this section;
and
eligible
] transmission
service
customer operates electrical facilities that are interconnected to
the facilities of a
TSP
[
transmission service provider
],
it has executed an interconnection agreement for service under this section
or requested in writing that the
TSP
[
transmission service
provider
] file a proposed unexecuted agreement with the commission
.
[
;
]
annual planned
]
transmission service.
A
[
An eligible
] transmission service
customer requesting [
annual planned
] transmission service under
this section must submit an application for service to
ERCOT.
[
the independent system operator, no later than October 1 in the year preceding
the year in which service is to commence. The purpose of this application
is to identify deficiencies in the ERCOT transmission system so that plans
may be formulated by the independent system operator and transmission service
providers to correct these deficiencies. A completed application shall provide
information required in paragraph (1) of this subsection.
]
The following information shall be provided in connection with
an application for service under this section:
]
(3)
]
ERCOT
[
The
independent system operator
] must acknowledge the request within ten
days of receipt.
When the request is complete, the
[
The
]
acknowledgment must include a date by which a response will be sent to the
[
eligible
] transmission service customer and a statement of any
fees associated with responding to the request (
e.g.
, system studies).
(4)
] If an application fails to
provide ERCOT with all information deemed necessary
[
meet the requirements
of this subsection
],
then ERCOT
[
the independent system
operator
] shall notify the [
eligible
] transmission service
customer requesting service within 15
business
days of receipt
and specify the reasons for such failure. Wherever possible,
ERCOT
[
the independent system operator
] will attempt to remedy deficiencies
in the application through informal communications with
a
[
an eligible
] transmission service customer.
(5)
] If a system security
screening
study is required, upon approval of the requesting transmission service
customer,
ERCOT
[
the independent system operator
] will
initiate such a study. If this study concludes that the transmission system
is adequate to accommodate the request for service, either in whole or in
part, or that no costs are likely to be incurred for new transmission facilities
or upgrades, the transmission service will be initiated or tendered, within
15
business
days of completion of the system security
screening
study.
(6)
] If
ERCOT
[
the independent system operator
] determines as a result of the system
security
screening
study that additions or upgrades to the transmission
system are needed to supply the transmission service customer's forecasted
transmission requirements, the
TSP
[
transmission service provider
] will, upon the approval of the requesting transmission service customer,
initiate a facilities study. When completed, a facilities study will include
an estimate of the cost of any required facilities or upgrades and the time
required to complete such construction and initiate the requested service.
(g)
] Facilities study. Based on
the results of the system security
screening
study, the
TSP
[
transmission service provider
] shall perform, pursuant
to an executed facilities study agreement with the transmission service customer,
a facilities study addressing the detailed engineering, design and cost of
transmission or ancillary services facilities required to provide the requested
transmission service.
transmission service provider
]
may charge a contribution in aid of construction under §25.195 of this
title (relating to Terms and Conditions for Transmission Service), the
TSP
[
transmission service provider
] shall notify the transmission
service customer whether it considers that a contribution in aid of construction
is appropriate and the amount of the contribution. The
TSP
[
transmission service provider
] shall base its request on the information
in the system security
screening
study
,
[
and
]
the facilities study and [
the rules in
] §25.195 of this title.
The transmission service provider shall be responsible
for the costs of any facilities study undertaken to determine the engineering,
design and cost of facilities associated with the transmission service provider's
addition of new resources used to serve the transmission service provider's
load. Such costs will be separately booked by the transmission service provider.
]
(h)
] Technical arrangements to be
completed prior to commencement of service. Service under this section shall
not commence until the installation has been completed of all equipment specified
under the interconnection agreement, consistent with guidelines adopted by
the national reliability organization and
ERCOT
[
the independent
system operator
], except that the
TSP
[
transmission
service provider
] shall provide the requested transmission service,
to the extent that such service does not impair the reliability of other transmission
service. The
TSP
[
transmission service provider
] shall
exercise reasonable efforts, in coordination with the transmission service
customer, to complete such arrangements as soon as practical prior to the
service commencement date.
(i)
] Transmission service customer
facilities. The provision of transmission service shall be conditioned upon
the transmission service customer's constructing, maintaining and operating
the facilities on its side of each point of interconnection that are necessary
to reliably interconnect and deliver power from a resource to the transmission
system and from the transmission system to the transmission service customer's
loads.
(j)
] Transmission arrangements for
resources located outside of
the
ERCOT
region
.
If a transmission service customer intends to import power from outside the
ERCOT region, it
[
It
] shall [
be the transmission service
customer's responsibility to
] make any transmission arrangements necessary
for delivery of capacity and energy
from the resource to an interconnection
with ERCOT.
[
produced from a resource outside of ERCOT to the interconnection
with the Southwest Power Pool. The independent system operator and transmission
service provider shall undertake reasonable efforts to assist the transmission
service customer in coordinating and scheduling arrangements with connecting
systems within ERCOT.
]
(k)
] Changes in service requests.
A transmission service customer's decision to cancel or delay the addition
of a new [
planned
] resource shall not relieve the transmission
service customer of the obligation to pay
for the facility study
[
a contribution in aid of construction to cover the costs of transmission facilities
constructed by a transmission service provider, under the rules in §25.195
of this title. Upon receipt of a transmission service customer's written notice
of such a cancellation or delay, a transmission service provider will use
the same reasonable efforts to mitigate the costs and charges owed by the
transmission service customer to the transmission service provider as it would
to reduce its own costs and charges
].
(l)
] Annual load and resource information
updates. A transmission service customer shall provide
ERCOT
[
the independent system operator
] with annual updates of load and resource
forecasts [
consistent with those included in its application for transmission
service by October first of each year
]. The transmission service customer
also shall provide
ERCOT
[
the independent system operator
] with timely written notice of material changes in any other information
provided in its application relating to the transmission service customer's
[
planned
]load, resources, its transmission system or other aspects
of its facilities or operations affecting the
TSP's
[
transmission
service provider's
] ability to provide reliable service under Division
1 of this subchapter.
(m)
] Termination of [
planned
] transmission service. A transmission service customer may terminate
[
planned
] transmission service after providing the
TSP
[
transmission service provider
] with written notice of the transmission
service customer's intention to terminate. A transmission service customer's
provision of notice to terminate service under this section shall not relieve
the transmission service customer of its obligation to pay
TSPs
[
transmission service providers
] any rates, charges, or fees, including
contributions in aid of construction, for service previously provided under
the applicable interconnection service agreement, and which are owed to
TSPs
[
transmission service providers
] as of the date of termination.
Transmission service providers and the
independent system operator shall establish
] non-discriminatory emergency
load shedding and curtailment procedures for responding to emergencies on
the transmission system.
(b)
] Transmission constraints [
and redispatch
]. During any period when
ERCOT
[
the independent
system operator
] determines that a transmission constraint exists on
the transmission system, and such constraint may impair the reliability of
a transmission service provider's
(TSP's)
system or adversely affect
the operations of either a
TSP
[
transmission service provider
] or a transmission service customer,
ERCOT will take
[
the independent system operator will take whatever
] actions, consistent
with good utility practice
and the commission-approved ERCOT protocols
, that are reasonably necessary to maintain the reliability of the
TSP's
[
transmission service provider's
] system and avoid
interruption of service.
ERCOT
[
The independent system operator
] shall notify affected
TSPs
[
transmission service providers
] and transmission service customers of the actions being taken. In
these circumstances,
TSPs
[
transmission service providers
] and transmission service customers shall take such action as
ERCOT
[
the independent system operator
] directs.
(2)
] Service to all transmission
service customers shall be restored as quickly as possible.
(4)
] To the extent
ERCOT
[
the independent system operator
] determines that the reliability
of the transmission system can be maintained by redispatching resources, or
when redispatch arrangements are necessary to facilitate generation and transmission
transactions for
a
[
an eligible
] transmission service
customer, a [
transmission service provider or
] transmission service
customer will initiate procedures to redispatch [
its
] resources,
as directed by
ERCOT.
[
the independent system operator. The
obligation to redispatch resources includes the obligation to redispatch non-utility
resources that a transmission service customer is relying on.
]
(5)
] To the greatest extent possible,
any redispatch shall be made on a least-cost non-discriminatory basis. Any
redispatch under this section will provide for equal treatment among transmission
service customers
.
[
, subject to the priorities set out in §25.195(d)
of this title. If the independent system operator determines that a transmission
service provider will not have adequate transmission capacity to satisfy the
full amount of a valid request for planned transmission service, the transmission
service provider nonetheless shall be obligated to offer and provide the portion
of the requested planned transmission service that can be accommodated without
addition of any facilities. This obligation includes a duty to redispatch
resources to increase the level of planned transmission service that may be
provided. However, the transmission service provider shall not be obligated
to provide transmission service, to the extent that the service requires the
addition of facilities or upgrades to the transmission system, until such
facilities or upgrades have been placed in service.
]
the transmission service provider
reserves the right
], consistent with good utility practice and on a
non-discriminatory basis, [
to
] interrupt transmission service without
liability on the
TSP's
[
transmission service provider's
]
part for the purpose of making necessary adjustments to, changes in, or repairs
to its lines, substations and other facilities, or where the continuance of
transmission service would endanger persons or property.
transmission service provider's
] system or
on any other system directly or indirectly interconnected with the
TSP's
[
transmission service provider's
] system, the
TSP
[
transmission service provider
],
in consultation with ERCOT
and
consistent with good utility practice, may interrupt transmission
service on a non-discriminatory basis in order to limit the extent
of
[
or
] damage
from
[
of
] the adverse
condition or disturbance, to prevent damage to generating or transmission
facilities, or to expedite restoration of service.
transmission service provider
] will give
ERCOT
[
the independent system operator
],
affected transmission service customers, and affected suppliers of generation
as much advance notice as is practicable in the event of such interruption.
The
] transmission service
customer fails
[
customer's failure
] to respond to established
emergency load shedding and curtailment procedures to relieve emergencies
on the transmission system
, the transmission service customer shall be
deemed to be in default. Any dispute over a transmission service customer's
default shall be referred to alternative dispute resolution under §25.203
(relating to Alternative Dispute Resolution (ADR)) and may subject
[
may result in
] the transmission service customer [
being deemed
by the transmission service provider to be in default and subject
] to
an assessment of an administrative penalty
by the commission
under
[
the
] Public Utility Regulatory Act §15.023.
The independent system operator
] shall report
interruptions
[
the interruption
]
to the commission, together with a description of the events leading to
each
[
the
] interruption, the services interrupted, the duration
of the interruption, and the steps taken to restore service.
Billing and Payment for Transmission Service and Ancillary
Services]
.
the service provider shall submit an invoice to the customer for the charges
for all services furnished under this section during the preceding month
].
The invoice shall be paid to the service provider
by the customer so that the service provider
] will receive the funds
by the
35th
[
20th
] calendar day after the date of issuance
of the invoice, unless the
TSP
[
provider
] and the
transmission service
customer agree on another mutually acceptable
deadline. All payments shall be made in immediately available funds payable
to
the TSP
[
service provider
], or by wire transfer to
a bank named by the service provider
or by other mutually acceptable
terms
.
in accordance with the methodology specified for interest on overbillings
and underbillings in §23.45(h) of this title (relating to Billing)
].
Interest on delinquent amounts shall be calculated from the due date of the
bill to the date of payment. When payments are made by mail, bills shall be
considered as having been paid on the date of receipt by the
TSP
[
service provider
].
service
provider
] on or before the due date, and such failure of payment is
not corrected within 30 calendar days after the
TSP
[
service
provider
] notifies the customer to cure such failure, [
a default
by
] the customer shall be deemed to
be in default
[
exist
].
service provider
] may initiate a proceeding with the commission to terminate
service. In the event of a billing dispute between the
TSP
[
service provider
] and the
transmission service
customer,
the
TSP
[
service provider
] will continue to provide
service during the pendency of the proceeding, as long as the customer:
service provider
] will provide notice to the customer and to the
commission of its intention to terminate service.
service provider
] shall be liable to the other for damages
for any act that is beyond such party's control, including any event that
is a result of an act of God, labor disturbance, act of the public enemy,
war, insurrection, riot, fire, storm or flood, explosion, breakage or accident
to machinery or equipment, a curtailment, order, regulation or restriction
imposed by governmental, military, or lawfully established civilian authorities,
or by the making of necessary repairs upon the property or equipment of either
party.
service
provider
] shall assume all liability for, and shall indemnify each other
for, any losses resulting from negligence or other fault in the design, construction,
or operation of their respective facilities. Such liability shall include
a transmission service customer or
TSP's
[
service provider's
] monetary losses, costs and expenses of defending an action or claim
made by a third person, payments for damages related to the death or injury
of any person, damage to the property of the
TSP
[
service
provider
] or transmission service customer, and payments for damages
to the property of a third person, and damages for the disruption of the business
of a third person. This paragraph does not create a liability on the part
of a
TSP
[
service provider
] or transmission service
customer to a retail customer or other third person, but requires indemnification
where such liability exists. The indemnification required under this paragraph
does not include responsibility for the
TSP's
[
service provider's
] or transmission service customer's costs and expenses of prosecuting
or defending an action or claim against the other, or damages for the disruption
of the business of the service provider or customer. The limitations on liability
set forth in this subsection do not apply in cases of gross negligence or
intentional wrongdoing.
and ancillary
services
]. For the purpose of determining the ability of a
transmission
service
customer to meet its obligations related to transmission [
and ancillary services
] and any other obligation in Division 1 of this
subchapter (relating to
Open-Access Comparable Transmission Service for
Electric Utilities in the Electric Reliability Council of Texas
[
Transmission and Distribution
]), a
TSP
[
service provider
] may require reasonable credit review procedures. This review shall
be made in accordance with standard commercial practices.
service provider
] may require
a
transmission service
customer to provide and maintain in effect
during the term of service, an unconditional and irrevocable letter of credit
in a reasonable amount as security to meet its responsibilities and obligations
under Division 1 of this subchapter or an alternative form of security proposed
by the customer and acceptable to the service provider and consistent with
commercial practices established by the Uniform Commercial Code that reasonably
protects the
TSP
[
service provider
] against the risk
of non-payment.
(i)
] of this section, in the event that a dispute arises
under Division 1 of this subchapter (relating to Open-Access Comparable Transmission
Service for Electric Utilities in the Electric Reliability Council of Texas)
and the dispute is not subject to the alternative dispute resolution procedures
established in the commission-approved Electric Reliability Council of Texas
(ERCOT) protocols,
[
over the provision of transmission service,
including the curtailment of such service, or ancillary services or the pricing
or other terms or conditions of such services,
] the parties to the dispute
shall engage in mediation or other alternative means for resolving the dispute,
prior to filing a complaint with the commission.
Such
] representatives shall make a good faith effort to
resolve the dispute on an informal basis as promptly as practicable. [
In attempting to resolve the dispute within a mutually agreeable time period,
they may seek the informal advice of the independent system operator (ISO)
regarding resolution of the dispute. The informal advice of the independent
system operator is not binding on either party.
]
In the event parties
] are unable to resolve the dispute
under subsection (b) of this section, the parties shall either
:
[
refer the matter to arbitration in accordance with the procedures in
this subsection or, upon agreement of all parties, shall engage in mediation
with the assistance of a neutral third party of their choice who has training
or experience in mediation.
]
The independent system operator shall
administer the arbitration. The independent system operator shall maintain
a commission-approved list of qualified persons available to serve on arbitration
panels who are knowledgeable in electric utility matters, including electricity
transmission and bulk power issues, to be selected from a list of persons
proposed by owners and users of the transmission system wishing to participate
in the development of the list. The independent system operator shall select
at least one name submitted by each stakeholder for the list. The independent
system operator shall also maintain a separate list of attorneys experienced
in arbitration that may be available to chair the arbitration panels.
]
A party
shall initiate arbitration by filing a letter with the independent system
operator requesting that arbitration be scheduled. A copy of the letter shall
be served upon the other party to the dispute at the same time the letter
is filed with the independent system operator. The independent system operator
shall provide the parties the list of persons qualified to serve on arbitration
panels and list of persons available to chair arbitration panels, within ten
working days of receipt of the letter.
]
(d)
] Arbitration panel. Any arbitration
initiated under this section shall be conducted before a three-member arbitration
panel. Each party shall choose one arbitrator from the
commission-
approved
list of panel members. In the event there are more than two parties to the
dispute, the parties shall jointly select the two arbitrators. The two arbitrators
chosen by the parties shall choose the chairman of the arbitration panel.
If the two arbitrators chosen by the parties are unable to agree on the selection
of a chairman, they will be dismissed and the parties shall select two different
arbitrators from the approved list. The arbitrators are not required to choose
the chairman from the names of persons on the
commission's
[
independent system operator's
] list of panel members so long as the
person chosen [
is an attorney who
] is qualified as an arbitrator.
Panel members chosen shall not have any current or past substantial business
or financial relationships with any party to the arbitration (other than previous
arbitration experience). The chairman of the panel shall make all necessary
arrangements for arbitration to commence within ten working days of completion
of the panel.
(e)
] Procedures. The arbitrators
shall provide each of the parties an opportunity to be heard and, except as
otherwise provided herein, shall generally conduct the arbitration in accordance
with the Commercial Arbitration Rules of the American Arbitration Association
and any applicable commission rules. The panel may request that the parties
provide additional technical information relevant to the dispute. The arbitration
panel shall render a decision within 30 calendar days from the closing of
the evidentiary record of the arbitration and shall notify the parties in
writing of such decision and the reasons therefor. The decision shall not
be considered precedent in any future proceeding.
(f)
] Basis for decision. The arbitrators
shall be authorized only to interpret and apply the provisions of the commission's
rules relating to transmission [
and ancillary
] services, the
commission-approved ERCOT protocols
[
independent system operator's
rules
], the
TSP's
[
electric utility's
] transmission
tariff, and any service agreement entered into under that tariff
. The
arbitrators
[
and
] shall have no power to modify or change
any of the above in any manner.
(1)
]
(2)
]
If any party to the arbitration
files a complaint before the commission, the
[
The
] arbitration
panel decision shall be filed in the commission's Central Records and shall
be considered by the commission in preparing a Preliminary Order
in the
complaint proceeding
[
, should either party file a complaint regarding
the arbitrated matters
]. The complaint shall be docketed and may be
referred to the State Office of Administrative Hearings. The decision may
be admitted in evidence in any such complaint proceeding.
(g)
] Costs. Each party shall be
responsible for the following costs, if applicable:
(1)
] its own costs incurred during
the arbitration process;
(2)
] its pro rata share of the costs
of the three arbitrators, pooled and shared evenly among the parties.
(h)
] Effect of pending
alternative
dispute resolution
[
arbitration
]. The transaction which is
the subject of the dispute shall be allowed to go forward pending the resolution
of the dispute to the extent system reliability is not affected.
(i)
] Effect on rights under law.
Nothing in this section shall restrict the rights of any party to file a complaint
with the commission under relevant provisions of the Public Utility Regulatory
Act or with the Federal Energy Regulatory Commission under the Federal Power
Act or the right of
a TSP
[
an electric utility
] to seek
changes in the rates or terms for transmission or ancillary services, following
the completion of the alternative dispute resolution procedures in this section.
(3)
] Because of the imminent threat
to the health and welfare of
a TSP's
[
an electric utility's
] customers in the event of a reliability problem, a petitioner's dispute
will be heard by the commission in an emergency session except in those instances
where a quorum of the commission is not present. In those instances where
a quorum is not present, the chairman of the commission shall have the authority
to issue an interim order to resolve the dispute so as to protect the reliability
of the system, with the order remaining in effect until such time as a quorum
is present.
Subchapter O. UNBUNDLING AND MARKET POWER
Part 9.
TEXAS LOTTERY COMMISSION